After tax 401k/mega backdoor

Google
QRWT08

Go to company page Google

QRWT08
Sep 3, 2021 17 Comments

With MBD there are two options:

1. Convert after tax 401k contributions to Roth 401k (Can opt in to automatic conversion on Fidelity, Vanguard, etc.)

2. Convert after tax 401k contributions to Roth IRA (Manual process by calling agent on Fidelity, Vanguard, etc.)

Which of these do you do and why?

#personalfinance #investments #google #amazon #microsoft #fabcebook #tech

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TOP 17 Comments
  • Amazon
    wryajbnxm

    Go to company page Amazon

    wryajbnxm
    Shouldnโ€™t most do IRA conversion? Why would you use Roth 401k
    Sep 3, 2021 10
    • Google, maybe your company allows it but at Amazon we can't roll over the 401k "anytime we want". So that's a terrible choice to say to just roll it into the roth 401k
      Sep 4, 2021
    • Also, yes the gain for that one day would be taxable IF the market went up that day, but if you could actually time the market that accurately you wouldn't be working at Google, you'd be a billionaire overnight
      Sep 4, 2021
  • Dell / Eng
    hrdwre !=๐Ÿ’€

    Go to company page Dell Eng

    hrdwre !=๐Ÿ’€
    I call fidelity every two weeks, so that i can independently invest it and do options trading. Otherwise the automated version stays in some of the 20 shitty mutual funds that are part of our employer plan.
    Sep 3, 2021 0
  • Apple
    VMbQ35

    Go to company page Apple

    VMbQ35
    The only advantage of roth 401K is you can withdraw penalty free at age 55 if you retire. Check out rule of 55. For Roth IRA, youโ€™d have to wait till 59.5. Obviously this is only for the earnings. The contributions can be withdrawn anytime for both without penalty.
    Sep 4, 2021 2
    • Google
      QRWT08

      Go to company page Google

      QRWT08
      OP
      contributions cannot be withdrawn without penalty in Roth 401k until 55/59.5. Penalty free contributions withdrawal before age 55/59.5 is only for Roth IRA if account age is >5
      Sep 5, 2021
    • New
      cmMN40

      New

      cmMN40
      You are telling me you staying at Google until 59.5? You can get that shit out when you change jobs. I prefer Roth IRA tho
      Oct 21, 2021
  • Amazon / Eng
    not amazon

    Go to company page Amazon Eng

    not amazon
    ira >>>>>> 401k

    self managed with all available tools or extremely limited set provided by employer

    that should be obvious
    Sep 4, 2021 0
  • GE
    Jawc04

    Go to company page GE

    Jawc04
    I had to call to coordinate this rollover to Roth IRA. I prefer to call anyway
    Sep 3, 2021 0