No. of Recommendations: 1
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
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement