Skip to main content

Questions tagged [roth-401k]

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

Filter by
Sorted by
Tagged with
0 votes
1 answer
192 views

Rollover former employe's 401k after backdoor Roth IRA conversion?

I am no longer at my former employer but I have an existing 401k plan with Vanguard through them. 30% of the contributions were pre-tax. (traditional 401k) 70% of the contributions were post-tax. (...
Raj's user avatar
  • 693
4 votes
2 answers
3k views

Move money from former employer's 401k to Roth IRA and Rollover IRA

I am no longer at my former employer but I have an existing 401k plan with Vanguard through them. 30% of the contributions were pre-tax. (traditional 401k) 70% of the contributions were post-tax. (...
Raj's user avatar
  • 693
0 votes
2 answers
68 views

Is it possible to undo Roth 401k contributions, not ROE, but have it returned?

I contributed around 10k to my Roth 401k in 2023, but I need the money due to my personal situation quite immediately (2-4 weeks). Is there any mechanism of undoing my contribution and getting the ...
haku's user avatar
  • 133
3 votes
2 answers
8k views

Roth 401k - Contributions are not going in as after tax?

So, I have a Roth 401k with my employer. I always thought that the Roth meant that I am contributing after-tax dollars into the account. I just realized the following: For simplicity, let's assume: I ...
Raj's user avatar
  • 693
2 votes
1 answer
368 views

Yearly 401k Contribution Limit Question

December 22 is the day of my last paycheck for the year. I'm trying to contribute the maximum allowed by the IRS for the year. Since this is the last paycheck I'll get for the year, would that be ...
Rich's user avatar
  • 1,749
0 votes
1 answer
98 views

Converting some Pre-Tax 401k Contributions to Roth Contributions

Is it possible to convert some Pre-Tax 401k contributions to Roth contributions each year? Since I would have to pay taxes on the amount converted I wouldn't be able to do it all at one time.
Rich's user avatar
  • 1,749
3 votes
2 answers
409 views

Roth vs Traditional 401K when paying income tax in two states

I graduated in May and got my first full-time job and would like to being contributing more to retirement. I live in New York State (not NYC) and work in Connecticut so I pay state income tax in both ...
E400Jack's user avatar
2 votes
1 answer
742 views

What tax form is used for Roth conversion within a 401(K)? (Not IRA)

I am not asking about a conversion from 401K to Roth IRA. (That'd be Form 8606 by the way). My employer plan allows both traditional and Roth 401(K). Really. They also allow Roth conversions from ...
Harper - Reinstate Monica's user avatar
4 votes
1 answer
597 views

In the US, is post tax 401k different from Roth 401k?

I had a talk with the brokerage firm retirement planning team, and they told me that if I have money in 401k, it can be pre tax, post tax, or Roth 401k, and even post tax and Roth 401k are different. ...
Stefanie Gauss's user avatar
3 votes
1 answer
170 views

Do I need to keep/file "Distribution Statement" for Mega Backdoor Roth IRA?

My new employer offers the Mega Backdoor Roth option. After-tax contributions can be automatically & immediately converted to Roth within the 401(k), and can be rolled over to a Roth IRA at any ...
yoozer8's user avatar
  • 9,513
4 votes
1 answer
306 views

Possible to open multiple IRA accounts from the same institution?

Let's say I already have a traditional IRA account with a brokerage, and I've used it for tax deduction last year. Now, I want to use the backdoor Roth conversion method. From what I have ready, I ...
fatdragon's user avatar
  • 143
2 votes
1 answer
91 views

(Over) Contribution between two employers for the Roth 401k case to maximize matching

I know there are a few question about changing employers during a calendar year and trying to maximize company match between the two for 401k plans. I've read through them and I think I understand ...
achao's user avatar
  • 151
0 votes
2 answers
181 views

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 ...
achao's user avatar
  • 151
3 votes
0 answers
53 views

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,...
selfLearning96's user avatar
4 votes
3 answers
440 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 ...
Dave Simione's user avatar
2 votes
2 answers
175 views

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 ...
Franck Dernoncourt's user avatar
1 vote
1 answer
98 views

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 ...
user's user avatar
  • 1,507
-1 votes
5 answers
279 views

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 ...
user541686's user avatar
  • 3,369
1 vote
1 answer
70 views

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 ...
Node.JS's user avatar
  • 657
1 vote
1 answer
292 views

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 ...
JohnFx's user avatar
  • 53k
6 votes
2 answers
868 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 ...
Rich's user avatar
  • 1,749
2 votes
1 answer
81 views

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 ...
Rich's user avatar
  • 1,749
1 vote
0 answers
45 views

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 ...
Robert Green's user avatar
1 vote
0 answers
82 views

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, ...
cnst's user avatar
  • 495
2 votes
2 answers
690 views

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 ...
Stefanie Gauss's user avatar
3 votes
1 answer
72 views

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 ...
jaytrain's user avatar
0 votes
3 answers
144 views

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 ...
Josh's user avatar
  • 213
6 votes
4 answers
2k views

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"...
theastronomist's user avatar
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 ...
Wuschelbeutel Kartoffelhuhn's user avatar
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 ...
Ira's user avatar
  • 273
3 votes
1 answer
1k views

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?
Rich's user avatar
  • 1,749
1 vote
3 answers
205 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) ...
Franck Dernoncourt's user avatar
0 votes
1 answer
798 views

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 ...
Franck Dernoncourt's user avatar
2 votes
3 answers
336 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 ...
Runeaway3's user avatar
  • 2,898
1 vote
3 answers
176 views

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 ...
tir38's user avatar
  • 65
2 votes
1 answer
185 views

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 ...
Franck Dernoncourt's user avatar
2 votes
1 answer
101 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) ...
Bob's user avatar
  • 1,673
4 votes
1 answer
163 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 ...
Franck Dernoncourt's user avatar
0 votes
1 answer
64 views

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 ...
deeper-understanding's user avatar
1 vote
0 answers
64 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 ...
Bob's user avatar
  • 1,673
0 votes
1 answer
177 views

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 ...
Bob's user avatar
  • 1,673
0 votes
1 answer
121 views

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 ...
ChuckLeviton's user avatar
2 votes
3 answers
247 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)?
Brosky's user avatar
  • 79
2 votes
2 answers
213 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 ...
geofflittle's user avatar
1 vote
0 answers
45 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: ...
kp123's user avatar
  • 111
3 votes
3 answers
373 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 ...
dareToDiffer07's user avatar
0 votes
1 answer
85 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 ...
Fritz Cumberland's user avatar
0 votes
2 answers
422 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 ...
Matthew's user avatar
  • 3,150
1 vote
3 answers
335 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-...
Christ Schlacta's user avatar
3 votes
2 answers
1k 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 ...
nick2225's user avatar
  • 143