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 $…

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