"Mega Backdoor Roth IRA" - Who has tried it?

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

Gisnep: Mar 29, 2010

tjh5122 posted:

(1) Has anyone utilized this "mega backdoor Roth IRA" trick and had success?

Yes, 2016 will be my third year.

quote:

2) My Employer's 401(k) plan documents explicitly state that ONLY post-tax dollars may be withdrawn from a 401(k) while employed. So, if my employers plan ONLY allows for post-tax withdrawals, does this supersede the guidance from the IRA publication and allow me to yank the post-tax money and roll into a Roth?

Not sure about this. My plan keeps all my contributions (Pre-tax, Roth, After-Tax) and their earnings separate, and I don't have any trouble rolling over just the after-tax portion. However, if my after-tax portion has earnings, my provider makes me roll those over at the same time and pay taxes on them, citing IRS regulations.

quote:

How does the actual transaction work for you? When you get the distribution, do you act as the middle-man to get the money to Vanguard?

This wasn't directed at me, but here's how I do it.
1. Send a cashier's check for the amount to my employer (they allow lump-sum after-tax contributions)
2. My employer sends it to my 401k provider, Fidelity
3. As soon as it appears in my Fidelity account, I call them and request a rollover to Vanguard
4. They mail me a check for the amount, made out to Vanguard
5. I send the check to Vanguard along with my purchase form for my Roth IRA

# ¿ Mar 27, 2016 21:59

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# ¿ May 16, 2024 18:17

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