第一步与前者相同,第二步的目的地变成了Roth 401(k),这是一种in-plan Roth rollover(同一个401(k) plan中向Roth 账户进行的rollover)。若401(k) plan允许after-tax 401(k)进行in service distribution,那么第二步中进入Roth 401(k)中的资金会被标记为otherwise distributable amount(相应的Roth 401(k) elec...
Higher earners may use this planning tool to fund a Roth account. “A 401(k) has no income restrictions on after-tax contributions, but a Roth outside does,” Dudley said. “If you contribute funds to your after-tax account and then almost immediately distribute those funds via an ...
The primary feature of a Roth IRA is that provided a five-year holding period is met since your first contribution and you’re age 59 1/2 or older, withdrawals will be completely tax-free (though there are several penalty exceptions to the age and five-year holding period requirements and ...
Your tax bill isn't chiseled in stone at the end of the year. Here are 10 tax tips and steps you can take after January 1 to help you lower your taxes, save money when preparing your tax return, and avoid tax penalties.
HOWEVER (and there’s always a however in life, don’t ya know) – if you rollover the 401(k) first (or during the same tax year) and then convert the $40,000 to Roth, you will be taxed on$30,000of the conversion. This is because, now that you’ve rolled over the 401(k) ...
This is somewhat similar to theTraditional-to-Roth IRA reconversion methodto save taxes. I read some skeptical posts in the BH thread as to the legitimacy of this action, but none were really backed by any evidence. I don’t see why both methods aren’t equally legal. ...