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Questions tagged [roth-401k]

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

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0 votes
1 answer
198 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. (...
9 votes
3 answers
2k 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 ...
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. (...
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 ...
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 ...
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 ...
3 votes
6 answers
5k views

Are Roth 401(k) after-tax contributions at a disadvantage for maximizing employer match money?

I feel like there is a negative to Roth 401(k)s that I haven't seen mentioned anywhere after doing some major research. Assuming the employer match amount is a percentage of the after-tax amount that ...
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.
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 ...
4 votes
1 answer
605 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. ...
2 votes
1 answer
746 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 ...
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 ...
13 votes
1 answer
7k views

Should I use a Roth 401K rather than 529 to save for children's college?

I have set up a 529 for my child's college fund but the more I look at it the less useful it seems compared to alternatives. The 529 is quite restricted -- What if she doesn't go to college? What if ...
2 votes
1 answer
92 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 ...
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 ...
5 votes
2 answers
4k views

How are employer matched contributions handled in rollover from Roth 401k to Roth IRA?

I recently asked this question: Can I do a Roth 401k rollover to Roth IRA and withdraw contributions I've made this year? In there, one of the answers pointed out that employer 401k contributions ...
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 ...
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,...
4 votes
3 answers
443 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 ...
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 ...
1 vote
1 answer
99 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 ...
-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 ...
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 ...
1 vote
1 answer
296 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 ...
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 ...
6 votes
2 answers
869 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 ...
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 ...
0 votes
2 answers
423 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 ...
1 vote
0 answers
46 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 ...
2 votes
2 answers
344 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 (...
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, ...
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 ...
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 ...
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"...
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 ...
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 ...
5 votes
2 answers
6k views

Can you recharacterize a Roth 401(k) contribution?

I understand that you can recharacterize Roth IRA contributions back into traditional IRA contributions by the next April 15, if you change your mind and decide it would make sense. Then you won't owe ...
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?
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) ...
1 vote
1 answer
73 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?
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 ...
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 ...
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 ...
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 ...
0 votes
0 answers
238 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....
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) ...
5 votes
1 answer
272 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
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 ...
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 ...
12 votes
3 answers
30k views

Could a 401k or IRA contribution switch my current taxable income to a lower tax bracket? Is this the same for traditional and Roth 401k?

In the case that your annual income is right in the limit between one tax bracket and the next tax bracket, can contributing to a 401k or IRA reduce your present income declaration in such a way that ...