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|Subject: Re: After-Tax in-service rollover to Roth?||Date: 10/8/2013 8:47 AM|
|Author: thomasbihn||Number: 73470 of 80197|
Thanks to you and to all that have responded. I'll take a look at the articles. I talked with an accountant and it appears that my strategy looks to be a legitimate approach. To clarify, here is the information I provided to him.
My company has the following accounts I can contribute to:
* Pre-Tax (0-90%)
* Roth (0-90%)
** There is a ""Pre-tax and Roth subtotal listed".
* After-Tax (0-16%)
I'm referring to contributing to the After-Tax (non-Roth) account then doing an in-service roll-over to a Roth IRA. It appears from your response that you thought I was talking about rolling over money from my Pre-Tax 401(k) to a Roth IRA, which is not my intention. Can you confirm if this scenario is how you understood my previous e-mail?
I was thinking of having the following yearly setup:
401(k) contributions (Traditional and Roth): $17,500 (max)
Roth IRA contributions: $5,500 (max)
After-Tax (non-Roth): $13,000 (estimate)
In this scenario, I'd have approximately $500/pay going to the After-tax (non-Roth). The following day, I would do an in-service roll-over to my Roth IRA from here. End of year, the total contribution (direct and rollover) to the Roth IRA would then be $18,500 as well.
I'll also cross-post on the tax board. I'm not planning on beginning this until I am comfortable with it as a legal and safe method and once I do, I won't start until next year.
Thanks again everyone
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