Deferred Compensation vs maxing out mega backdoor roth Hello All, Seeking advice on the best plan of action, since open enrollment for 2025 is here and I need to make a decision in the next ~10 days. I have been maxing out my 401k + mega backdoor roth to the tune of 69K However, the mega backdoor roth uses post-tax money , so I am not getting any immediate tax benefit out of it. My employer offe…

Backdoor Roth IRA. What to do with traditional IRA money Hello everyone, Thank you for your help. I currently have around 20k in my roth ira and 13k in my traditional ira. The reason why i contributed to my traditional ira was I didnt realize that roth ira contributions would be more beneficial for me in the long run. Now, because my income is too high I would like to perform a backdoor roth ira as my…

Trying to maximize Backdoor Roth IRA with small amount in a traditional IRA I will speak to my accountant on this but just more so I know what to expect: I currently have ~$1,500 in a traditional IRA (it’s mostly/all in single stocks) that I never deducted on since I was over the income limit. If I plan to convert this to a ROTH IRA to avoid pro rata rule for backdoor Roth IRA, I presume this will also still trigger a …

Backdoor Roth vs 401K My wife and I expect to exceed the Roth IRA income limit next year, so I’m looking ahead and trying to decide the best way to save for retirement moving forward. Right now, we both max out our Roth IRAs, and I max out my traditional TSP, and my wife contributes 10% to her traditional 401k. From my understanding, contributing to a traditional IRA…

Automate Backdoor Roth Conversions on Vanguard Just what the title says. Next year, I’d like to do monthly backdoor Roth conversions. Is there a way to automate this so I don’t have to manually do it each month? submitted by /u/Pristine-Time7771

After tax contributions – can only do mega backdoor Roth 401k, not Roth IRA Hi, I already maxed out my trad 401k. I just learned that I can do after tax contributions thru my works retirement plan but I can only convert them into Roth 401k. I can’t move then into a Roth IRA unless I leave the company Is it still worth it to put them into a Roth 401k? Thanks! submitted by /u/Complete_Donkey9688

Rolling pension into a Backdoor Roth question My wife has a small amount in a pension fund (~$14k) in a school district she no longer is employed at. I have finally gotten enough information to roll those funds into an IRA rather than leave them there. We file MFS due to student loans, so any Roth IRA contributions have to be backdoor. I have a previous Roth IRA account from before we were …

Backdoor Roth IRA with money in Traditional IRA Hi all, I would like to do a backdoor Roth IRA conversion for the first time this year. I have ~$7,000 in my traditional IRA that was put there in previous years. If I put in $7,000 this year to convert, it will invoke the pro-rata rule, with $3,500 going from my ‘after tax’ and invoking a tax bill on the other $3,500, correct? Is there a way to…

Backdoor Roth IRA – question Hi, I had gotten some help here in doing my backdoor roth early this year. I understand how to take a lump sum and do the back door, but how does this change if i want to contribute monthly to my IRA? do I need to do a backdoor each month? or can I leave the money invested ina traditional and then convert it at the end of the year? Or just “cont…

Can I do a mega backdoor Roth if I’m still eligible to contribute to a Roth IRA this year? Title. Will be under for this year still to contribute to Roth normally but in next year(s) may not be and so I was looking to do mega backdoor Roth from my company’s 401k. However, if I just wanted to dump more into my Roth , can I still utilize the mega backdoor Roth? submitted by /u/MadMax_08

How much to contribute to mega backdoor Roth My employer offers mega backdoor Roth and I don’t make enough to max it out. How much should I contribute to it, assuming I’m maxing out 401k, live in HCOL area, and am looking to save for a down payment on a house. I’m new to the concept of mega backdoor Roth so any advice would be appreciated! Especially in terms of how to prioritize savings …

Backdoor ROTH Tax Question I just funded a backdoor ROTH through my Fidelity account this year. I have no intention of taking out the money until I hit my retirement age. That said, my understanding is that at the end of this year I will need to file a tax form. What’s the tax form? Also, do I need to pay taxes on any of my contributions into it? I essentially already did…

Impact of transferring 401K to traditional IRA on Backdoor Roth IRA Some articles suggest transferring 401K to TIRA after leaving a company (say, https://www.investopedia.com/articles/personal-finance/071715/8-reasons-roll-over-your-401k-ira.asp) I was wondering the tax implication of doing so if I still want to do backdoor roth IRA contribution (~$7000 this year). The IRS’ pro-rata rule requires you to include …

One time lump sum payment mega backdoor roth strategy advice Situation: We normally do not exceed the Roth IRA contribution limit, however this year I’m receiving a large (~$500k) lump sum in December. Just want to say that I will immediately be maxing trad IRA and doing a normal Backdoor Roth for my spouse and I. Because I’m not receiving this money until December, it makes it more challenging for me to…

After tax 401k distribution messing up backdoor Roth At the beginning of this year I made a backdoor Roth contribution to my IRA. At the time, I had 0$ in my traditional IRA account. So far, so good. A month or so ago, I rolled over my after tax 401k account into my IRA (basically a MBDR). The contributions went to my Roth IRA while the earnings went to my traditional IRA. Ideally, I would have do…

Backdoor Roth IRA Conversion – Did I do it right? Hello! 27 F here with a MAGI of $165,000 per year. I realize that I am above the MAGI limit for IRA contributions, so I did the ‘backdoor’ conversion of IRA to Roth IRA. I just wanted to check with y’all if I did it correctly. The steps I followed: I opened a Traditional IRA and a Roth IRA at Fidelity I contributed $7,000 to the Traditional IRA…

Backdoor Roth IRA and Pro-Rata rule I’m trying to determine if it makes sense for me to do a backdoor Roth. My main concern is the Pro-Rata rule and if it applies to me. I have money in a traditional IRA. However, this is ONLY pre-tax contributions as the full amount is the result of 401K conversions to an IRA after leaving jobs. I have never contributed a dime of after-tax money …

Moving invested Traditional IRA to backdoor Roth As the title states, I have a vanguard traditional IRA account that I’ve been more or less maximizing contributions and investing into VFFVX since mid 2021 (around 26k invested). I’m only now learning about the backdoor Roth, which I wish I would have known about sooner. All my contributions so far have been nondeductible due to my income exceed…

Roth IRA Backdoor – confirming this won’t be a taxable event? I make over the limit and would like to do Roth IRA. Is my understanding correct in that I can contribute my own money (after tax) into a traditional IRA -> convert it to Roth IRA and this won’t be a taxable event since I am also not deducting (due to being over the limitation). And then I would just file IRS Form 8606 with the amount I contribu…

Backdoor roth question – help with traditional IRA Hello! Sorry in advance for this stupid question..I wanted to use backdoor roth given high income but think I idiotically messed up.. I opened a traditional IRA with Vanguard and contributed $6000 which my accountant deducted and wrote off for my 2022 tax return. I should have converted to roth IRA immediately but forgot and let it sit and had $…