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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > "Mega Backdoor Roth IRA" - Who has tried it?
 
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mtr
May 15, 2008

tjh5122 posted:

There is a catch. IRS publication 2014-54 (https://www.irs.gov/Retirement-Plans/Rollovers-of-After-Tax-Contributions-in-Retirement-Plans) states that such rollovers from your 401(k) must take a pro rata share of pre-tax and post-tax dollars. This would subvert the strategy by forcing you into recognizing taxable income on the pre-tax 401(k) dollars.


Can someone help explain this paragraph from OP to me? Does this "pro rata share" not apply if your employer's 401k keeps separate the after-tax contributions and allows for withdrawal of only the after-tax contribution?

* # ¿ Apr 3, 2016 22:08
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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > "Mega Backdoor Roth IRA" - Who has tried it?