Jump to content

Recommended Posts

Posted

Just a simple clarification...

A client with a 5 participant 401(k) plan asked about the mega backdoor roth option.  I explained that every year we max out the plan to the 415 limit, there is no room for a voluntary after tax contribution.   Can she convert the PS contribution to ROTH each year with an in-plan conversion?

Posted

You can also amend the plan to allow for ECAR (Employer Contributions as Roth) and you don't need to do the in-plan conversion.  Either way, you get to the same place.  The only difference is that the client will have a taxable event in the ECAR or In-Plan Conversion versus the After-tax contribution to Roth.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use