Personal Investments • Roth 401(k) option at work

Not many. I can't remember telling anyone to prefer Roth 401k contributions. I've recommended a mega backdoor Roth after maxing the 401k several times.

Since you're living it up in bracket 24, do a pre-tax 401k, a backdoor Roth IRA, and before you waste money on a Tesla, look to see if you can do a mega backdoor Roth IRA.

I am a little confused by "Roth 401k" here - see my situation:

My employer allows 1) pre-tax traditional 401k, 2) after-tax Roth 401k, and 3) regular after-tax contribution:

A: 1) + 2) are within $23,000 limit
B: 1) + 2) + 3) are within $76,500 limit
C: 3) can do in-plan conversion (mega backdoor, for me, once Fidelity has setup at the beginning, it is automatically converted each time) to Roth, but that is also called Roth 401k, just not within $23,000 limit as in the situation of A above.

Is my understanding correct?
Thanks.

Statistics: Posted by fred2017 — Thu Oct 24, 2024 11:30 pm — Replies 44 — Views 3481

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