I wrote an email to my 401K financial advisor regarding the Roth backdoor rollover:
*********************************************
Hello xxx
Thank you for the information provided about after-tax 401k plan my company currently has.
I keep studying this subject on the varieties of retirement plans. Based on my understanding, there are 3 types of accounts:
Pre-tax 401k(this is what I have now),
Roth 401K(not sure if I could have this one),
After-tax 401K(not allowed from your last email).
The question I would like to ask is:
Does my current pre-tax 401K support the following two options?
1: In-service Roth Distribution
2: In-plan Roth Conversion
My purpose is to see if I could possibly convert or rollover some fund to Roth IRA by using the backdoor.
Thank you,
******************************************
Below is his answer a week later:
******************************************
Good morning xxxx, thank you for your patience. In response to your questions.
ROTH 401k Contributions, are not available for the plan In-service ROTH Distribution, not available In-plan ROTH Conversion, not available. At age 59.5 you can take an in-service distribution.
Although the features you are asking about are not available currently. A strategy you may want to consider is.
When you are able to (age 59.5) take the in-service distribution and move the money to your traditional IRA. Then do ROTH conversions every year up to your tax bracket. I know this is not the exact goal you want to accomplish. It could help accomplish part of your goal.
it looks like i dont' have many options to move money into
ROTH IRA other than the annual $7000/$8000 contribution regardless if the money is pre-tax or after-tax.
I also have no idea to what side business LLC I can create to generate some income such that I can create employer 401k for myself. Any idea what else I can do?
as you mentioned that HR might not have the necessary
knowledge for this after-tax 401K. not sure if a 401K plan provided by LFG(lincoln Financial Group) can just accept adding one or two employees upon my request or even just a few employees such that company can minimize the extra cost introduced by adding this after-tax 401K.
I wrote an email to my 401K financial advisor regarding the Roth backdoor rollover:
*********************************************
Hello xxx
Thank you for the information provided about after-tax 401k plan my company currently has.
I keep studying this subject on the varieties of retirement plans. Based on my understanding, there are 3 types of accounts:
Pre-tax 401k(this is what I have now),
Roth 401K(not sure if I could have this one),
After-tax 401K(not allowed from your last email).
The question I would like to ask is:
Does my current pre-tax 401K support the following two options?
1: In-service Roth Distribution
2: In-plan Roth Conversion
My purpose is to see if I could possibly convert or rollover some fund to Roth IRA by using the backdoor.
Thank you,
******************************************
Below is his answer a week later:
******************************************
Good morning xxxx, thank you for your patience. In response to your questions.
ROTH 401k Contributions, are not available for the plan In-service ROTH Distribution, not available In-plan ROTH Conversion, not available. At age 59.5 you can take an in-service distribution.Although the features you are asking about are not available currently. A strategy you may want to consider is.
When you are able to (age 59.5) take the in-service distribution and move the money to your traditional IRA. Then do ROTH conversions every year up to your tax bracket. I know this is not the exact goal you want to accomplish. It could help accomplish part of your goal.
*************************************
ROTH IRA other than the annual $7000/$8000 contribution regardless if the money is pre-tax or after-tax.
I also have no idea to what side business LLC I can create to generate some income such that I can create employer 401k for myself. Any idea what else I can do?
money into ROTH IRA?
backdoor。每年自己存钱到traditional IRA，7千左右，然后自己转到Roth IRA。普通backdoor和公司401K没关系。
breakeven，省不了税
那就更谈不上mega backdoor conversion了。
it's really helpful for people to understand how to put money into ROTH IRA despite it does not work for my situation.
in my situation.
because i don't have ROTH 401k
like to know more about how to do it this way.
第0级（最低级）：公司没有401K plan，
第1级：公司只有传统税前401K，没有公司Match 401K，
第2级：公司有税前401K，并有Match 401K，
第3级：公司有税前，Roth，和Match 401K,
第4级：公司有税前、Roth、Match、Aftertax 401K，但不支持In-plan Aftertax 401K Mega backdoor Roth conversion，
第5级（最高级）：公司有税前、Roth、Match、After Tax 401K，并且有In-plan Aftertax 401K Mega backdoor Roth conversion.
很多传统公司还停留在第1 or 2 级。有时可以向公司HR建议。
几年前，我在公司用Fidelity，但没有Aftertax401K，当然也就没有mega backdoor。我知道Fidelity的系统完全支持aftertax 401K和Mega backdoor, 就向公司HR询问建议，第二年果真就增添了，不知道是巧合不是，但相信要求的人多了，公司会考虑的，反正费用也不高。
犹太人老板，抠门啊
ballpack for the 费用 you mentioned? maybe I should try to ask our HR department, anyway, no harm to try.
flexiable as Fidelity.
https://www.lincolnfinancial.com/public/individuals
not a popular or usual way to reward employee
所以比起工资和其它福利，是非常少的。多数是因为公司嫌麻烦或者HR对投资理财不懂造成的。
knowledge for this after-tax 401K. not sure if a 401K plan provided by LFG(lincoln Financial Group) can just accept adding one or two employees upon my request or even just a few employees such that company can minimize the extra cost introduced by adding this after-tax 401K.
十几年前在startup做过几天HR，还负责IT，甚至办公室买桌子椅子
后台的软件也变得无限复杂，没有401K管理公司会这样做，IRS的规定上也不会容许。
也就是说从原先的100刀/人，到120刀/人。起始建立新的401K plan，则贵的多， 还有初始费几万刀 per plan。