Questions tagged [roth-401k]

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

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If I have a Roth 401k, what would making after-tax contributions mean?

(To start, i know the Roth 401k uses after tax dollars, and i know that the IRS allows further “after-tax contributions.” This makes it seem kind of confusing, as it would appear I’m asking about ...
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3 votes
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Tax calculation question from Forbes article

From this article, When To Use Pre-Tax Vs Roth 401(k) Contributions, I'm confused on how the 31% difference was calculated from the given example: For example, if your household taxable income is $500,...
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4 votes
3 answers
291 views

Rollover Roth 401(k) when not eligible for Roth IRA

I recently changed jobs and am in the process of rolling over my 401(k) to my standard brokerage account where I have a number of rollover IRAs. This time, however, I have both a 401(k) to ...
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2 votes
2 answers
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Should one max out one's 401(k) at the beginning of the year?

Assume that: The employers catch up on the missing match at the end of the year, via as year-end true-up contributions. Should one max out one's 401(k) at the beginning of the year? I have no idea ...
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1 vote
1 answer
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How do should I optimize my 401k employee contribution to maximize my employer's contribution?

I just want to maximize my employer's contribution. My current employer plan has the following constraints Company will provide a 100% (dollar-for- dollar) match on the first 5% of eligible W-2 ...
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5 answers
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What current tax bracket is used for Roth 401(k)? What happens if it's incorrect?

When contributing to a Roth 401(k), you get taxed on it immediately. But we know that, in general, your company won't know your exact tax rate and brackets; it'll only have an approximation—that's why ...
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  • 3,267
1 vote
1 answer
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Distribution of funds between pre-tax and ROTH for a under 30 years old

What is the usual contribution percentage for an under 30 years? I am trying to change mine but I am not sure how much what I should change it to. equal distribution between ROTH and pre-tax or more ...
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  • 615
1 vote
1 answer
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Can I withdraw my contributions from a Roth IRA early without penalty even if they were rolled over from a Roth401k?

I understand that both Roth 401k and Roth IRA accounts allow withdrawing contributions prior to age 59/12 without penalties. But today I heard someone say that I should NOT roll over my Roth 401k to a ...
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6 votes
2 answers
463 views

Rolling Over a mixed 401k (Roth + Traditional) into a new 401k

If I have a 401k that has both Roth and Traditional contributions, then leave the job and want to roll it into another employer's 401k will that be possible? Will there be complications because of ...
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  • 1,623
2 votes
1 answer
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Rolling Traditional 401k Over then making Roth Contributions

I have a Traditional 401k that I want to rollover into my new 401k which I haven't made any contributions to yet. Can I roll my traditional 401k over to my new 401k, then make Roth contributions to my ...
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1 vote
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What are the rules regarding early withdrawal of contributions from a Roth IRA after a rollover from a solo Roth 401(k)?

Plan Open a solo Roth 401(k) (I'm self-employed) and contribute roughly $50,000 during the first year Wait some amount of time, if necessary? Rollover the Roth 401(k) into my existing Roth IRA ...
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Can there be different After-Tax contribution limits for HCE and NHCE in a Mega Backdoor Roth 401k?

Is it possible in a 401k plan with Mega Backdoor Roth to have different After-Tax contribution amount limits for each employee depending on whether they're part of the HCE or NHCE group? For example, ...
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2 votes
2 answers
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What is a 401k plan in some contracting agency that is 0% to 100% contribution and limited to 25 funds?

I have worked as a software contractor before, for a company and they didn't have 401(k) plan at all. And then I have worked at a different company, with something like, we can contribute, and for the ...
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3 votes
1 answer
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Given a tax advantage account and a non-tax advantage account, should trades be concentrated in the tax advantage account?

TL;DR: If my investing strategy is a mix of ETFs (50% value, rarely traded) and stocks (50% value, more frequently traded), is it advantageous to do the stocks trading in the tax advantage account and ...
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0 votes
3 answers
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Taxes on growth - Traditional vs Roth 401K

Let's say I can put $10K today in my 401K. Let's assume this investment theoretically grows to $100K by the time I retire. Putting aside income brackets for a moment, is it true that if my 401K ...
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4 answers
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How should I split my contributions to Roth IRA and Roth 401k?

I am in my early 20s and currently contribute ~18% of my income to my retirement accounts, 7% to company sponsored Roth 401(k) (Popular Investment Company) and 11% into my Roth IRA (A "Big 3"...
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11 votes
5 answers
3k views

With tax-free earnings, isn't Roth 401(k) almost always better than 401(k) pre-tax for a young person? [duplicate]

I can start withdrawing from my 401(k) in 30 years. I'm currently in one of the the highest federal tax brackets and will likely be in the lowest tax brackets when I start withdrawing. That alone ...
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27 votes
2 answers
4k views

Could my employer match contribution have caused me to have an excess 401K contribution?

Could my employer's match have caused me to have an excess 401K contribution? For 2020, I contributed the maximum into my 401k-Roth, $19,500. I also made a catch-up contribution (I'm eligible) to my ...
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3 votes
1 answer
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Is it forbidden to have more than one Roth account?

Is there any conflict or any rule against having a Roth IRA and a 401k with Roth contributions?
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1 vote
3 answers
179 views

Is there any upside to contributing to the after-tax 401(k) instead of the Roth 401(k) via paycheck deduction?

In some 401(k) plans, one has the choice to configure one's paycheck deductions to go to pretax 401(k), after-tax 401(k) and Roth 401(k): Is there any upside to contributing to the after-tax 401(k) ...
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0 votes
1 answer
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Where can one view the split between pretax, after-tax and Roth money in one's Vanguard 401(k) account?

The best I could find is https://retirementplans.vanguard.com -> Retirement plan participants -> Manage my money -> Manage my brokerage option, which gives the split between Roth money and ...
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2 votes
3 answers
274 views

Can I rollover Roth/Traditional 401k into a Roth IRA?

My previous employer offered both a Roth and a Traditional 401k (unclear to me if these are technically separate accounts... as far as I was functionally aware, I had one 401k account, which could ...
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1 vote
3 answers
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What might contribute to income during retirement?

I am reading about the differences between Roth and traditional 401k. The big deciding factor seems to be relative tax % between now and retirement. An example from this article: Imagine Sally and ...
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2 votes
1 answer
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What are the upsides of rolling over a Roth 401(k) to a Roth IRA?

Some employer's retirement allows to roll-over Roth 401(k) to a Roth IRA, otherwise this can be done when leaving one's job. Roth IRA has at least 3 upsides compared to Roth 401(k): There are no ...
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2 votes
1 answer
95 views

Roth 401(K) and a traditional IRA

If an individual has net earnings from self-employment of $3000 and he contributes $3000 to a Roth 401(K) can he also contribute to a traditional IRA? That is, does the contribution to the Roth 401(K) ...
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4 votes
1 answer
133 views

After converting after-tax 401(k) into Roth IRA, can the 401(k) contributions be withdrawn from the IRA without penalties?

https://www.investopedia.com/articles/personal-finance/063015/roth-401k-vs-roth-ira-one-better.asp mentions this upside of Roth IRA regarding pre-retirement withdrawals: A final advantage is greater ...
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0 votes
1 answer
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If we can go to Europe, Northern Europe, Asia, to establish a corporation and invest in US stocks, then it is like IRA or 401(k)?

Because there are limitations of IRA and 401(k), such as $7000 or some people use somewhat complicated backdoor to do it "legally" have a higher amount, but also subject to penalties if the ...
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1 vote
0 answers
50 views

Do I need to report contributions to a Solo Roth 401(K) plan every year?

I am self employed. I recently shutdown my individual 401(K) plan at E*Trade. There was also a Roth 401(K) plan also. I am not sure if it is one plan or two. I have been told by somebody at E*Trade ...
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0 votes
1 answer
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What are the penalties for mistakes in form 5500EZ

I recently shutdown my solo 401K Plan and solo Roth 401K plan. I have filled out form 5500ez but have not yet sent it in to the IRS. I understand there are very serious penalties for filing late. What ...
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0 votes
1 answer
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Pretax 401k and Roth 401k- additional take home pay not factored in, is it?

All the arguments in favour putting money in the Roth 401K emphasise that the withdrawals are tax free. So if you compare putting the same amount of money during your working career in a trad 401K vs ...
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2 votes
3 answers
178 views

Should I invest in 401(k) or is it better to invest by yourself in stocks? Or do both?

I'm still learning about investing and want to know if I should invest in 401(k) or is it better to invest by yourself in stocks? Or do both? Can you pick your own stocks with 401(k)?
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2 votes
2 answers
159 views

Rolling over pre-tax employer contributions into my Roth 401(k)

If I have set my 401(k) up such that my contributions go to my Roth 401(k), my employer's matching contributions are still made pre-tax and go to my "traditional" 401(k). Can I roll these ...
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1 vote
0 answers
39 views

Solo 401K with a Solo Roth 401K and MEGA Backdoor Roth

In 2020, I have worked as both a sole proprietor / individual contractor with no employees and as a W2 part-time employee. I am 41 yrs old (under 50) and will have multiple streams of income in 2020: ...
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3 votes
3 answers
336 views

Should I contribute to a 401k pre-tax or Roth after tax if I plan to work for a year and then go back to grad school?

I am completely new to investment for retirement, and just got my first job. My job offers a 401k pre-tax and a Roth after-tax. However I plan return to grad school after one year of working. Is it ...
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0 votes
1 answer
83 views

CARES Act 401(k) withdrawal

I desperately need access to my money in my Roth 401k at work (according to me). However, my situation does not qualify me to take money out under current CARES Act rules though both the Treasury ...
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0 votes
2 answers
315 views

Does automatic roth in-plan conversion preclude my ability to mega backdoor roth IRA conversion?

In my 401k plan I have the option to make after-tax contributions (This is different than Traditional/Roth type accounts) Ignoring all gains for simplicity, my 2020 contributions end up like this: I ...
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  • 2,790
1 vote
3 answers
291 views

401(k) which is better, more traditional or less ROTH

My company matches my 401(k) contributions, 4% to my 5%, so I'm contributing at least 5%. So I ran some numbers. If I switch from traditional contributions of 5% to ROTH contributions of 5%, my take-...
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3 votes
2 answers
444 views

Are funds mixed between 401k and Roth 401k?

If your employer offers a 401k and Roth 401k plan, are these considered two separate accounts? If I want to contribute the maximum funds allowed for 2020 ($19,500) equally between both, does that mean ...
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1 vote
0 answers
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Rule 55 with a Roth 401k

If I wish to use Rule 55 with a Roth 401(k) and withdraw the entire amount at age 55, would I have to pay tax on the full amount?
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0 votes
2 answers
164 views

Is it true that when we can contribute $60,000 into pre-tax or after-tax 401(k), it can be all after-tax so we never have to worry about the tax? [duplicate]

Some suggestion is that if we plan to have lower tax bracket when we retire, we can contribute into 401(k) pre-tax instead of after-tax. However, if some people may contribute $60,000 into either pre-...
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5 votes
3 answers
551 views

Is there a point to contributing to a nondeductible traditional IRA?

I, 24 y/o US citizen employed in the US, make over the 137k cut off for making contributions towards a Roth IRA. As a result, I have considered contributing to a traditional IRA. However, I am not ...
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1 vote
1 answer
72 views

Income Tax filing of Roth Info

I may have mis added the amount of 401 K I converted to a Roth account on my taxes. Will the IRS catch that? What will be the penalty?
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2 votes
1 answer
132 views

401K Liquidation

I contributed to a 401(k) for the past three years and due to market volatility there is no gain in my contribution. Its hard earned money. Is it possible to sell all the stocks and bonds contributed?...
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  • 129
0 votes
1 answer
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401K Enrollment Benefits

I have enrolled in my 401K plan from 2016 onward. While looing into the investment portal, right now I am having only 68K but I contributed for 69K. Is it still worth in enrolling 401K? If I invested ...
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1 vote
0 answers
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convert 401k after tax contribution to roth 401k

My company recently introduced a Roth 401K option to the traditional 401k retirement account. I have some existing after-tax contributions (~ $80,000 or so). If I convert this to a Roth 401K, my ...
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0 votes
1 answer
102 views

Double entry process to record 401k change in value

My Roth 401(k) statement shows the following fields: Payroll Contributions (including employer match) Change in Value Dividends Expenses In double-entry accounting, is the "Change in Value" income ...
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1 vote
1 answer
101 views

What happens when contributions exceed IRS Retirement Savings Plan (RSP) limit?

IRS has Retirement Savings Plan (RSP) limit of $19,500 for year 2020. What happens if I make more contributions than this limit? Do I need to pay additional tax now? (I am less than 50 years old, ...
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0 votes
1 answer
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My 401(K) plan and form 5500

I live in the United States and have a small unincorporated business. I have no employees and I am single. I have a 401(K) and a Roth 401(K) through E*Trade. Between the two accounts I have a little ...
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  • 883
31 votes
4 answers
13k views

Why should I invest so much in 401(k)?

I am 24 yrs old and am making $60,000/yr while saving ~41% of that. 28% of which is going to my Roth 401(k) and the rest is going into a TD Ameritrade and a small amount into a Robinhood account (both ...
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  • 421
0 votes
2 answers
311 views

401k Taxes (USA) -- Traditional vs Roth (not IRA)

Good afternoon, Looking for the 401k tax pros out there. I have four primary 401k tax related questions: 1) Income Tax Bracket at Retirement: When retiring and "cashing out" on a trad 401k: I ...
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