MEGA ROTH backdoor

1. IRA includes

(a) traditional 401K and (b) ROTH 401K. 

2.  401K includes

(c) regular 401K and (d) ROTH 401K, total cannot exceed 20500.

(e) after-tax 401K, if your employer offers it, you have to max out 22500 above, then fill $20500-58000 in after tax 401K.  Provided 

After-tax 401K has no tax deferral function at all, you pay tax on principal and you pay tax on earnings.  The benefit of after-tax 401K is that (1) it is shielded from lawsuit (2) doesn't count as college financial aid.  

MEGA ROTH backdoor: You can rollover (e) after-tax 401K to (b) ROTH IRA or (d) ROTH 401K, in a number of situations.  Including after termination to ROTH IRA, or in service rollover to ROTH 401K, if your plan allows it. 

 

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• 真复杂，需要看看 -常谈- ♂ (0 bytes) () 12/07/2021 postreply 08:28:50