Pre-tax vs Roth (After-Tax) 401(k) Contributions 7 Comments Tom April 6, 2019 Good article. I do have a question, if I rollover money from a Roth 401k into a Self-directed Roth IRA, would that remove the RMDs related to the Roth 401k? Reply Ken Cheng January 13, 2019 If ...
Disclaimer: “What is the difference between a ROTH IRA and ROTH 401k?”To qualify for the tax-free penalty-free withdrawal of earnings, a ROTH IRA must be in place for at least 5 tax years, and the distributions must take place after age 59 ½ or due to death or disability. Before...
I contributed 22,261.00 after tax to the Solo 401k, but by the time it rolled into my Roth, it had earned another $9, for a gross distribution of 22,270. It’s not a total distribution, since the pre-tax funds from previous years are still in the Solo 401k. I am trying to follo...
She recently started a new job and i’m inclined to enroll her into their Roth 401k plan. The 5 year clock for this Roth 401k starts this year, 2018, do we need to worry about the 5 year clock for this new account, after she turns 59.5 (2020), since she already has had a Roth...
Can you rollover 401K aftertax contributions directly to a Roth IRA tax free? Reply Marilyn McDonell Feb 28, 2012 at 8:16 PM I am 67 and will not need the money I will be required to take from my IRA at 70-1/2. so it seems to be a good idea if I roll a portion of my...
(which would be $0 for me), Plus nontaxable amounts included in rollovers made to your traditional IRAs from 1987 through 2022. All of my contributions and 401k rollovers to my current traditional IRA were pre-tax dollars, which to me is taxable at somepoint. If I’m thinking correctly...
Roth IRA contributions come from money that has already been taxed but there is no tax on the withdrawal. This can have a great many implications that folks don’t often understand. So, let’s take a look at an example. Traditional IRA Versus Roth IRA: An example ...
If you take a non-qualified distribution from your Roth TSP you can end up paying taxes on the withdrawal even though you funded the account with post-tax income. The amount of the taxable withdrawal will be in relation to the value of your account versus the contributions that got you the...
That said, I can run a report where, if you’re interested in how much should I be saving inside of a Roth versus an IUL or if I should be pulling money out of the IRAs to pay the tax, which, for a lot of people, it makes sense right now because taxes are...
Finally, after 16 years of contemplating the merits of contributing to a Roth IRA, I’ve gained clarity since launching Financial Samurai in 2009. The power of compound returns, combined with the fact that 401(k) and IRA contributions are tax-deferred, means that more retirees could end upea...