Ronnieboy
Full time employment: Posting here.
- Joined
- Feb 14, 2008
- Messages
- 748
Lot of 401K plans also allows non-deductible after-tax contributions. All of the after-tax contributions can be transferred to Roth IRA when you leave the company or 59.5 whichever is sooner. You can contribute up to $54,000 (minus pre-tax and employer match) per year. So I call this jumbo backdoor IRA contribution!
PS: IRA clarified the rules in 2015 or 2016 so this route is very recent and most people are not aware of it.
Yes. I would love to do this, but so far, my current 401k administrator with my employer does not allow non deductible after tax contributions