On the other hand, a Roth 401(k) is a variation of the traditional 401(k) plan that allows for after-tax contributions. Unlike a traditional 401(k), contributions to a Roth 401(k) are made with after-tax dollars, meaning taxes are paid upfront. However, the major advantage of a Rot...
After rolling over a 401k you will no longer be able to retire the year you turn 55. Instead, you will have to wait until you are 59.5 years old. So, if you are planning to retire early you might want to keep your 401k where it is. Leaving it where it is isn’t necessarily bad...
Given the recent stock market drop, if you made non-deductible IRA contributions in the past few years, but your “Backdoor Roth” was complicated by also having some other pre-tax IRA balances mixed in (say, from a 401k rollover), then this might be a chance to convert everything over...
Roth accounts, on the other hand, do NOT get deducted at tax-time. These contributions are considered “after-tax”, which means they were made with money that you paid income taxes on. You pay taxes today and do not see any savings on your tax bill when you contribute to a Roth. Do...