Questions tagged [roth-401k]

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

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1answer
53 views

any danger doing and in-service withdrawal and having it be a direct roll-over?

I'm eligible (old enough) to take an "in-service withdrawal" from my 401K plan (at fidelity). I want to do a "direct-rollover" to Vanguard (my IRA). I spoke to a fidelity csr and they said they would ...
1
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2answers
120 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
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1answer
51 views

What is a roll-over to a Roth account?

I don't qualify for contributing directly to Roth accounts. I keep hearing about roll-overs but I don't understand how roll-overs interact with my current accounts. Do I pay taxes on my money (or ...
6
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3answers
1k 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 ...
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2answers
78 views

Roth counting toward 401k maximum

Vanguard is showing me that my Roth contributions are counting toward the $19,000 401k maximum. I thought Roth counted towards a separate $6000 maximum. Is my Roth not an IRA?
2
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1answer
71 views

Can Traditional and Roth 401k be withdrawn in a ratio to minimize taxes in retirement?

I've seen posts claiming that if you have a mix of pre-tax and after-tax savings in a 401k, the pre-tax money can be withdrawn up to the threshold of the top of the current 12% tax bracket and after-...
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0answers
36 views

Traditional vs Roth 401K [duplicate]

I just found out that the company I work for offers 401K Roth. I am thinking of switching to 401K Roth soon. Right now I only have traditional retirement fund and no Roth. I think I have been ...
6
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1answer
262 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 ...
3
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3answers
408 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 ...
0
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1answer
91 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 ...
6
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2answers
567 views

Which should I prefer, traditional or Roth 401k? [duplicate]

Possible Duplicate: Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)? I'm just a few years out of college, and am starting to put aside some retirement savings. My employer ...
3
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1answer
172 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
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4answers
940 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
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1answer
40 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 ...
6
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1answer
440 views

Do Roth 401(k) and Roth IRA plans share the same annual contribution limit?

I've contributed $2000 to my Roth 401(k) plan through my employer, and $4000 to my Roth IRA plan that is totally separate from my employer. My accountant says that the limit on Roth IRA contributions ...
7
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3answers
529 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
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1answer
512 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
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3answers
121 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
53 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....
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2answers
161 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
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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 ...
2
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2answers
299 views

Split Roth 401(k) Rollover between Traditional IRA and Roth IRA

Does the guidance in IRS Notice #2014-54 apply to Roth 401k rollovers? Specifically, is it possible to do a out-of-service rollover on a Roth 401k such that: The earnings are put in the Traditional ...
1
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1answer
83 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-...
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1answer
124 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?
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4answers
5k views

Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)?

I just graduated, and I'm starting a new job soon. My employer has pretty good policy for matching 401(k) contributions, so I want to invest as much as possible, especially during this first year. My ...
5
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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.
1
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2answers
293 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 ...
4
votes
2answers
277 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 ...
4
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2answers
245 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-...
2
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2answers
193 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 ...
2
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0answers
741 views

401k strategy for non-resident Indian planning to return to india

Scenario is for L/H visa holder who is earning salary in USD. The person also has employee sponsored 401k plan. The visa expires in 5 years and person would like to return at that time to India ...
1
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1answer
55 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 ...
6
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2answers
409 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 ...
6
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1answer
451 views

Will a Roth 401k rolling over to a Roth IRA allow the money to become penalty-free at withdrawl?

I'm aware that a Roth 401k and a Roth IRA are funded with after-tax amounts, and no taxes are incurred upon withdrawal. However, I have stumbled upon a few articles that state a 10% penalty early ...
0
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0answers
96 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 ...
3
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1answer
79 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 ...
4
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1answer
345 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....
0
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2answers
158 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/...
2
votes
4answers
512 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) ...
1
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1answer
161 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 ...
3
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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 ...
5
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2answers
387 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
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1answer
155 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
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4answers
247 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 ...
6
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3answers
1k views

If my 401k plan allows for pretax and Roth contributions, why would I want to open an IRA?

My company is switching to a 401k plan provider that allows for both Roth and pretax contributions. If I can make either type of contribution to this plan, why would I want an IRA? The previous 401k ...
1
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3answers
202 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
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2answers
756 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 ...
3
votes
1answer
230 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 ...
8
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3answers
878 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 ...