Currently I have no IRA's. I had never heard about a back door Roth using after-tax monies from a 401K until researching IRA's this last weekend.
My plan does allow in-service rollovers with after tax contributions. However, my after-tax contributions are limited to 5% of eligible compensation which would be $3,600.
Since the whole point (correct me if I'm wrong) of a back door Roth from after-tax 401K is to circumvent the (in my case) $5,000 limit am I correct to assume I could back door this $3,600 into a Roth IRA and still contribute another $5,000?
TIA, Liz
My plan does allow in-service rollovers with after tax contributions. However, my after-tax contributions are limited to 5% of eligible compensation which would be $3,600.
Since the whole point (correct me if I'm wrong) of a back door Roth from after-tax 401K is to circumvent the (in my case) $5,000 limit am I correct to assume I could back door this $3,600 into a Roth IRA and still contribute another $5,000?
TIA, Liz