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Questions tagged [roth-401k]

A specific retirement plan in US. Related US specific retirement plan tags "Roth IRA" and "401K"

0
votes
1answer
81 views

Can I put money in a Roth 403b from my bank account instead of doing a monthly paycheck deduction?

I have a Roth IRA and a Roth 403b through Fidelity. For the IRA, I know I can put money at any time from my bank account into it. However, I don't know how to actually do it for a Roth 403b. Is the ...
5
votes
2answers
244 views

What happens when a Roth 401(k) contribution interferes with payroll taxes?

I tried looking up this up on Google but there were too many irrelevant search results. I also perused through the Roth 401(k) Plan documents but was not able to find a section on this. My salary is ...
2
votes
1answer
63 views

Can Traditional and Roth 401k be withdrawn in a ratio to minimizes taxes in retirement?

I've seen posts claiming that if you have a mix of pre-tax and after-tax savings in a 401k, the pre-tax money can be withdrawn up to the threshold of the top of the current 12% tax bracket and after-...
3
votes
1answer
169 views

Accidental trade in Roth IRA

I accidentally made a few trades totaling about $6,000 in my Roth IRA that I intended to make in my taxable account. I realized the mistake when I got a notice from from broker asking me to deposit ...
5
votes
4answers
904 views

What are the advantages of a tax deferred investment account?

So, I suspect I am missing something huge about this. But I notice there is a lot of talk about retirement accounts recently such as 401-Ks and IRAs. I understand these come in two flavors, ...
3
votes
1answer
38 views

Are Governmental Roth 457b Distributions taxed if someone still works for the employer?

If someone has a Roth 457b plan, they're allowed to withdraw all the cash tax-free after they no longer work for the employer (as long as it's a qualified distribution). But if someone Still Works ...
3
votes
3answers
328 views

Post Tax 401k or Taxable Brokerage Account?

I max out my pre-tax 401k, HSA, and do a roth IRA or backdoor Roth IRA. With my additional savings is there any reason i would want to do a post-tax 401k instead of keeping it in a regular taxable ...
7
votes
3answers
382 views

How is a Roth 401(k) split during a divorce, and can a spouse's share be liquidated?

I am in the midst of negotiating a divorce where my spouse would prefer, whenever possible, to get cash instead of a retirement account. I have found many sources online (e.g., this one) stating that ...
2
votes
1answer
384 views

Can you immediately withdraw contributions to a mega backdoor Roth IRA without penalty?

My company allows us to do in-service conversions such that we can use mega backdoor Roth. If I convert my after tax contribution upon every paycheck into a Roth IRA (so this is pure after tax ...
2
votes
3answers
114 views

Merge Roth IRA + Roth 401k

I have a Vanguard Roth IRA that I opened just after graduating with my undergrad. I contributed to it for five years before landing a job at a large multinational. I stopped contributing to the Roth ...
0
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0answers
52 views

Why would an employer 401(k) plan prevents Roth assets from being exchanged into the SDBO Self-Directed Brokerage Option (SDBO)?

A Self-Directed Brokerage Option (SDBO) allows 401(k) plan holders to invest their 401(k) money directly into U.S. Equities, ADRs, ETFs, Publicly-traded Limited Partnerships, Publicly-traded REITs, U....
-1
votes
2answers
145 views

Why does Vanguard take over one day to convert after-tax 401(k) to 401(k) Roth within one's plan?

Why does Vanguard take over one day to convert after-tax 401(k) to 401(k) Roth within one's plan? Why isn't it faster, or even immediate? For example, if one initiate the conversion on Saturday noon ...
10
votes
3answers
2k views

Should I consolidate my retirement plans if both are performing well?

I worked for a company between 2010-2014, and have an established retirement plan through T. Rowe Price which they matched into. In 2014, I changed jobs and had a new retirement plan opened under ...
1
vote
1answer
78 views

Withdrawing from Roth IRA before age 59

This question is quite similar to this one, which I asked earlier this week. Suppose I have contributed to my Roth IRA plan $5,500 for 5 years for a total of $27,500 of contributions, plus another $...
18
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11answers
10k views

Is your future tax bracket the ONLY consideration for Roth vs Traditional 401(k) accounts?

I understand that Roth contributions get taxed on the way in. Income tax now at whatever tax brackets currently apply, no tax to pay when I take distributions at retirement. I understand regular pre-...
-2
votes
1answer
122 views

What is the difference between 401k and Roth 401k?

New to the 401k stuff. I just saw Roth 401k; what is the difference from a 401k? I already have a Roth IRA from Fidelity. Is that the same?
1
vote
2answers
265 views

How much can I roll over (and how often) for a mega backdoor roth?

My goal is to contribute more in after-tax dollars to my 401k plan and roll that into a Roth IRA. But I can't find anything that describes how much or how often. Can I move all my after-tax ...
5
votes
2answers
3k views

Has backdoor Roth IRA been changed in 2018?

Are normal backdoor Roth IRA and mega backdoor Roth IRA still possible in 2018 tax plan? I had troubles figuring it out due to number of different plans.
2
votes
2answers
179 views

Roth 401(k) compared to Roth IRA

Is there any benefit to investing in a Roth 401(k) plan, as opposed to a Roth IRA? I currently have a 401(k) plan at work that has a (very generous) 6% salary match on contributions, with no vesting ...
1
vote
1answer
53 views

Is there any deferral for a Roth 401(k)?

When contributing to a 401(k) plan via paycheck deduction, one may contribute to an after-tax 401(k), a Roth 401(k), or (the or is non exclusive) a traditional (a.k.a. pre-tax) 401(k). In one ...
4
votes
2answers
238 views

What are the pros and cons of converting an after-tax 401(k) to a Roth 401(k)?

What are the pros and cons of converting an after-tax (a.k.a. post-tax) 401(k) to a Roth 401(k)? From what I can see: pro: in the Roth 401(k), earnings made on the contributions are tax-free, unlike ...
6
votes
2answers
408 views

When rolling over a Roth 401(k) to a Roth IRA, does one have to pay any tax?

When rolling over a Roth 401(k) to a Roth IRA, does one have to pay any tax as a result of the transfer? For example, are the earnings resulting from the Roth 401(k) investments taxed when transferred ...
0
votes
0answers
92 views

What are the pros and cons of having a higher taxable income during retirement?

I am listing the pros and cons of pre-tax 401(k)/IRA (a.k.a. traditional 401(k)/IRA) vs. Roth 401(k)/IRA, in addition to what I read on choose Roth 401(k), or traditional 401(k). One of the ...
4
votes
2answers
244 views

Given the changes to income tax rates, should I change my 401(k) strategy?

With a new standard deduction of $24,000, how does that change my strategy for whether to put my $18,000 of 401(k) money in a Roth vs. a traditional account? What new strategies (particularly with tax-...
3
votes
1answer
78 views

Is an account transfer fee paid for transferring a Roth 401(k) to a Roth IRA tax-deductible?

I rolled over a Roth 401(k) to a Roth IRA and was charged a fee by the outgoing financial institution. This fee was paid from the account balance. Is this fee deductible as an investment expense? If ...
0
votes
2answers
149 views

What are the pros/cons of Roth IRA Rollover from a traditional IRA vs. from an after-tax 401(k)?

There exist two types of Roth IRA Rollover (a.k.a., Roth IRA backdoor): Convert from a non-deductible traditional IRA to a Roth IRA Convert from an after-tax 401(k) to a Roth IRA What are the pros/...
4
votes
1answer
296 views

Tax on money withdrawn from Roth 401(k) and Roth IRA when living outside the United States and over 59.5-year-old

I am over 59.5 year-old and live in the United States. I contributed to Roth 401(k) as well as Roth IRA. Money withdrawn from Roth 401(k) or Roth IRA is not taxed in the United States as I am over 59....
1
vote
1answer
156 views

Question regarding withdrawal from Roth 401(k) for first time home buyer

Suppose I have about 60k in my Roth 401(k) account. (50k on contributions + 10k earned through trading stocks using the 50k over time) I am a first time buyer and am planning to withdraw funds.. so I ...
6
votes
3answers
972 views

Mega Backdoor Roth: Withdrawal consequences for in-plan vs out-of-plan conversion

My employer allows after-tax 401k contributions, and has an option for automatic quarterly after-tax 401k -> Roth 401k in-plan conversions. The other option for executing the mega backdoor Roth is to ...
2
votes
4answers
465 views

which types of investments should be choosen for 401k at early 20's?

I am choosing my 401(k) investment options from my company. I am seeing alot of recommendations in stack exchange that at a young age, one should allocate money towards stocks. However in the 401(k) ...
5
votes
2answers
385 views

Can I hire my wife to max out another roth 401k?

I own my own company. I am maxing out my roth 401k with a match of 4%. Can hire my wife and pay her just enough to max out another roth 401k?
1
vote
4answers
245 views

I'm trying to setup my 401k with 5% match from my employer

I am newbie and I need help setting up my 401k. Basically, I just want to avail my employer's maximum match, and 5% is the minimum needed to reach it. But I'm not sure if I am doing it right. Here's ...
1
vote
1answer
149 views

What dictates 401K loan interest rates?

I have seen it commonly mentioned that 401K loans are offered commonly at Prime + 1% rates? But is that required by law? What section of the tax code addresses the upper and lowerbounds on interest ...
1
vote
3answers
201 views

Is it worth lowering Roth contribution to pay down credit card?

My early career 401(k) receives Roth contributions to 11% of my income with a 4% employer match (so 15% net contribution) and returns 13%. My credit card balance is currently higher than my 401(k) ...
3
votes
1answer
220 views

When should I contribute to my IRA over my 401(k)?

I know there are a few different factors to this, such as if you've reached the contribution limit for the year on your 401(k). With a 401(k) you can get employer contribution matching and a higher ...
4
votes
2answers
721 views

Roth 401k Contribution limits reset on job change

I am in my late 20s and am a single filer in US. My current employer and future employer(July '17) both provide Roth 401k plans from the same provider(Fidelity). I am deciding between a)rolling over ...
8
votes
3answers
861 views

Can I still contribute to a traditional IRA if it is not deductible? Should I?

I'm really confused about my saving situation, despite all of the articles and information I have found online. My employer offers a Roth 401(k), and I'm contributing up to the maximum employer match ...
3
votes
2answers
426 views

Are 401(k) & IRA Contribution Limits Mutually Exclusive?

Are the $18,000 401(k) 2017 limit and the $5,500 IRA limit mutually exclusive for a combined limit of $23,500 (under 50)? Or are they inclusive, meaning $5,500 in an IRA, would limit a 401(k) to $12,...
3
votes
2answers
185 views

What SHOULDN'T I do with my existing growth fund?

I'm 23 and have started my first full-time job approximately 7 months ago. Please bare with me, I'm a novice to financial investments. I just became eligible to contribute to my company's 401K plan ...
3
votes
1answer
228 views

Aggressive Mortgage Repayment

We're 5.5yrs into a 15yr note with a rate somewhere in the high 3% range and are on our way to early payoff as-is. However, I have found a way to payoff the remaining $100k within 11mo by ...
5
votes
1answer
278 views

Company Switched 401(k) Provider & Failing Highly Compensated Employee Test

My company switched 401(k) provider in Q3 of 2016 and at the time of the switch I've already contributed $15K Roth into the account for the 2016 calendar year. Then came the notice that I've failed ...
3
votes
1answer
96 views

Taxes cost basis for 401(k) rollover to Roth 401(k)

Lets say I contributed $18,000 to my 401(k) this year, and my employer matched 50%, so I have a total of $27,000 contributed this year. This money I invested and made $1000, so now I have $28,000. At ...
7
votes
2answers
1k views

Roth 401k when reached maximum AGI

I have a Roth IRA, but recently my wife and I reached annual income that makes contributions not permitted anymore. We both have 401ks at our work - Does the same rule apply to a Roth 401k? If we both ...
1
vote
2answers
104 views

Strategic rollover from traditional to Roth IRA for a young person (pre-retirement)

So we have this: Contributions to traditional IRA: Pre-tax Distributions from traditional IRA: Taxed at the time of distribution Contributions to Roth IRA: Post-tax Growth and distributions (...
3
votes
4answers
501 views

Is it sensible to redirect retirement contributions from 401(k) towards becoming a landlord?

I understand diversification; the idea is that one should spread capital over a variety of investments to mitigate risk. This question is about diversification across Roth IRA/401(k), state pension ...
12
votes
3answers
1k views

Employer offering Roth 401k as well as traditional 401(k), established in career

I am 33 years old and currently enrolled in my employers traditional 401(k) plan where I am putting 4% of my salary pre tax and having a maximum of 4% employer match into my plan. After 6 more months ...
-1
votes
1answer
135 views

Transferring fund from 401K to IRA

I have my 401K Account through my Employer. However, I don't have Employer Contribution. So I am trying hard to reach the maximum limit of 401K. I just noticed that there are fees charged by my ...
2
votes
1answer
177 views

20 years old, Roth IRAs how they work

I am 20 years old, I make around $30K a year, this is just an entry job so I hope to be making more in a few years. I was researching Roth IRA's and I was just a little curious how they work, and if ...
0
votes
1answer
96 views

Returned roth 401k check

After leaving a company for a new job, a Roth check was sent to me. Is there any tax consequences if this money is not reinvested? (It's a small amount of only $100)
5
votes
4answers
307 views

Can I do periodic rollovers from my low-perfoming 401k to an IRA?

My current 401k performs poorly, and has a very limited selection of funds. I do Roth contributions, with non-Roth employer matching. My Roth IRA allows me to select funds that perform significantly ...