401k transfer or backdoor Roth Hi all I have a traditional 401k that’s been sitting with my previous employer for almost 4 years and i don’t know if I should transfer it to my current employers 401k or do something like a Backdoor Roth? If I do a backdoor Roth do I need to pay taxes on the traditional 401k ? submitted by /u/Glum_Refrigerator746

Please explain backdoor Roth IRA like I’m in kinder. Trying to understand if I’m doing the right thing. Hi all! 🙂 So, background on my situation. I’m 42 years old, left my job last month. I have a traditional 401K that currently has 114k. Due to some personal circumstances will not be getting a new job for several months (possibly the rest of this year). I WAS going to cash out and yes I’m aware what a bad idea it is, when I called my plan admini…

Do I do backdoor to Roth IRA if I am not sure I will hit the income limit I want to contribute to my roth IRA. but I am not sure, with the overtime I have been working and will work in the coming months, whether my income will exceed $161,000 threshold for contributing directly. I am married but I want to file tax separately next year so my income limit for contribution will remain the same. What do I do at this time?…

How one volunteer stopped a backdoor from exposing Linux systems worldwide Photo by Amelia Holowaty Krales / The VergeLinux, the most widely used open source operating system in the world, narrowly escaped a massive cyber attack over Easter weekend, all thanks to one volunteer. The backdoor had been inserted into a recent release of a Linux compression format called XZ Utils, a tool that is little-known outside the Lin…

Help me understand a backdoor Roth IRA once and for all Currently I have one ROTH IRA, one Traditional IRA, and a brokerage account. I max my ROTH out every year. I make 100k average a year. I am not eligible for a conversion because I already have a traditional IRA and a ROTH? Even if I didn’t, I would just convert a traditional into a ROTH, every year? submitted by /u/TraveldaHospital

Is it worth the trouble to start a backdoor Roth IRA? Will this loophole be closed soon? I’m looking to start a backdoor Roth IRA to supplement my employer-sponsored retirement plan. Since there is only a $6500 contribution limit, is it worth it to go through the trouble of doing a backdoor Roth if this is something that is going to be outlawed soon? I’d like to be able to contribute to this account for the next 15-20 years. Is ther…

Backdoor Roth with less than $6500? Would you consider a backdoor roth if you don’t have the max contribution amount saved? Decided to add more to our brokerage, so I have about $3500 that I’m considering putting into a backdoor roth. Thoughts? submitted by /u/_kcs

Mega backdoor Roth for down payment? I at a point we’re for the first time I can seriously consider doing the mega back door Roth IRA I’m currently 30 and have 1 home we purchased in 2021 which takes roughly 20% of my take home pay. I want to start saving to buy a 2nd property in 5 years-ish. Would a Backdoor Roth be a good veichle to save money on and leverage as a down payment?…

Can I do BOTH a reduced Roth IRA contribution And a backdoor Roth in the same year? Is there any reason to do BOTH a reduced Roth IRA contribution and a backdoor Roth in the same year? to get to the total $6,500 limit? or should I just ignore the fact that I can do a reduced Roth IRA contribution and just do a backdoor Roth for the full $6,500? submitted by /u/stresspimp

Found out I can Mega Backdoor 401k, now what? So I found out my company does offer this. However, my after cash contributions can only come from my paycheck so it with it being October I don’t think I can do much this year anyway. ​ Can someone explain the benefits though? I put money in my 401k. Then I move it to a ROTH 401k. I then pay taxes again on this money. However, I already paid in…

Is there any reason not to immediately convert after-tax 401k money to a mega backdoor Roth? I currently defer part of my paycheck as after-tax 401k contributions (beyond the $22,500 IRS limit for traditional/Roth contributions), and I’ve been using my plan’s option to immediately convert that after-tax money to Roth. As it’s immediately converted every paycheck, there’s no pre-conversion growth, so no tax is owed on the conversion. As …

Mega Backdoor Roth IRA I have been trying to follow the flow chart the past few years and have been maxing out my 401k, backdoor Roth IRA, and putting some extra money into a personal brokerage account with Schwab and diversifying my portfolio with standard ETFs following advice from Bogleheads. I am switching jobs/companies to a place that offers Roth 401k/Mega Backd…

What is the benefit of doing a backdoor conversion of my traditional IRA into a roth IRA? I have an existing roth ira that I cannot contribute to anymore I became ineligible to contribute to a roth IRA this year so had to open a traditional ira. Is it worth doing a backdoor conversion to a roth ira? Of note, my company offers a 401k that i max out, as such I believe i have to make non-deductible contributions to my traditional ira? submitted by /u/essentialclt

Mega backdoor Roth vs Roth 401k Hi, my employer recently added the option to allocate after-tax dollars to an in-plan Roth conversion via a mega backdoor (up to a certain max). Along with this, I just received a raise and would like to route the majority of this to investments. For some context I already max out my 401k every year and don’t have any outstanding debt. I also ma…

How difficult are taxes with a rollover IRA and trying to do a backdoor roth IRA? I have 3+ 401ks from various old jobs and have been deciding what to do with them, after talking with some advisors, we came down to the options of either: A. Move all the old ones into my current jobs 401k B. Move all the old ones into a rollover IRA ​ I was leaning towards moving it all into a rollover IRA, however, my advisor mentioned that t…

Mega backdoor question Company 401(k) offers mega backdoor, but in-plan Roth conversions can only be made twice a year. Was planning to hold the funds in the plan’s money market option (vanguard) pre-conversion to keep growth to a minimum, and then convert in May/June and again in December. Thoughts? Never done this before so trying to avoid a big tax bill, and this s…

Backdoor Roth and IRA rollover account question I’m anticipating hitting the income limit on Roth IRA next year so I’m planning to do a backdoor roth instead. This year, I’ve been doing megabackdoor roths and I’m usually good about requesting the transfer immediately after each paycheck, but a little bit of pretax has trickled into an IRA rollover account. Now for backdoor conversion purposes…

FTX Employees Knew About the Backdoor to Alameda Months Before Collapse: WSJ The employees flagged their discovery to one of FTX’s director of engineering Nishad Singh but the problem never got fixed.

Mega Backdoor ROTH – Voya 401k After-Tax to Vanguard ROTH IRA. Am I doing something wrong? Hey folks – So… I’ve been doing a mega backdoor ROTH rollover multiple times – I was advised of this from a work colleague. I’ve also tried doing self-research as much as I can… However, I’m still getting some messages that scare me. ​ Basically, every 2 weeks with my paycheck – I will contribute to my 401k ROTH – and I’ll contribute to my…

What should I do with my old 401K with high fees? Rollover to IRA or is there tax implication if I did backdoor? I recently changed my job, and my current employer does not offer 401K. The 401K plan for my former employer charges $45/month record keeping fee. I obviously don’t want to pay this fee anymore, so is the best course of action for me to move the money (traditional 401K to traditional IRA, roth 401k to roth IRA) to an IRA? FYI: I contributed $65…