Answer from my financial advisor regarding ROTH backdoor

来源: 2024-10-04 12:11:22 [旧帖] [给我悄悄话] 本文已被阅读:

I wrote an email to my 401K financial advisor regarding the Roth backdoor rollover:

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Hello xxx

Thank you for the information provided about after-tax 401k plan my company currently has.

I keep studying this subject on the varieties of retirement plans. Based on my understanding, there are 3 types of accounts:

Pre-tax 401k(this is what I have now), 

Roth 401K(not sure if I could have this one), 

After-tax 401K(not allowed from your last email).

The question I would like to ask is:

Does my current pre-tax 401K support the following two options?

1: In-service Roth Distribution

2: In-plan Roth Conversion

My purpose is to see if I could possibly convert or rollover some fund to Roth IRA by using the backdoor.

Thank you, 

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Below is his answer a week later:

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Good morning xxxx, thank you for your patience. In response to your questions.

  1. ROTH 401k Contributions, are not available for the plan
  2. In-service ROTH Distribution, not available
  3. In-plan ROTH Conversion, not available.
  4. At age 59.5 you can take an in-service distribution.

Although the features you are asking about are not available currently. A strategy you may want to consider is.

When you are able to (age 59.5) take the in-service distribution and move the money to your traditional IRA. Then do ROTH conversions every year up to your tax bracket. I know this is not the exact goal you want to accomplish. It could help accomplish part of your goal.

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