Just saw email from fidelity yesterday saying changes to 401k tax plan with post tax Roth IRA being available.
Roth 401K (for just backdoor) and after tax 401k (for mega backdoor) are different. Salesforce does not allow megabackdoor yet. Is it now available that you are saying?
I wasn’t able to completely understand the subject hence posting here for more clarification. Looks like they are allowing mega backdoor ? After-Tax Contributions You can make after-tax contributions to the 401(k) Plan. The After-tax contribution opportunity is designed to help those that are taking full advantage of the match via Pre-tax and/or Roth contributions. Please note that After-tax contributions are not matched. Overview of Plan Contribution Types
We always had Roth 401K
IRA is diff from 401k. Suggest some research.
For 2019 you’ll be able to make post-tax Roth contributions above and beyond the 401k/Roth 401k contribution limit. This is huge.
It’s only huge if you can make in-service transfers from the 401K to an IRA, which can then be converted to a Roth. The “in-service” part of the equation is the “mega-backdoor” component referenced above. Otherwise, you’re just making after tax contributions to a 401K which have different tax implications on withdrawal of taxable contributions than a Roth IRA.
Read the plan. You can do daily in-plan conversions. It’s huge. There’s no IRA involved. It lets you add to your 401k Roth above and beyond the 18.5k limit. Not personal Roth. Roth portion of your 401k.
Read the email and pdf you received.
Wow I had no idea feel like this went under the radar
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Unless I'm missing something, everyone here is ineligible to make Roth IRA contributions. Google the Roth IRA salary limits. Did you mean Roth 401k?