Search found 576 matches: Roth 401k Roth 401k earnings

Searched query: roth 401k roth 401k earnings

by Alan S.
Mon Jan 25, 2021 12:21 pm
Forum: Personal Investments
Topic: Rollover 401k to convert small amount of after-tax into Roth
Replies: 10
Views: 758

Re: Rollover 401k to convert small amount of after-tax into Roth

... for the after tax sub account? The after tax sub account and their earnings cannot be transferred into the pre tax account, but I suppose you ... in the pre tax brokerage link, then do a split rollover into your Roth/TIRA IRAs like you already did. The tax free Roth rollover will of course ...
by Alan S.
Thu Jan 21, 2021 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor ROTH IRA and 1099-R from 401k and 8606 form
Replies: 10
Views: 497

Re: Backdoor ROTH IRA and 1099-R from 401k and 8606 form

... I am on. Every year , DW and I do a backdoor ROTH process where we do the ROTH Conversion every ... sent out some distribution directly from 401k during the mid of the year. There was some ... to IRS, is '8—Excess contributions plus earnings/excess deferrals (and/or earnings) taxable ...
by Alan S.
Tue Jan 19, 2021 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: CARES ACT 1099-R Distribution Code 1B is this correct?
Replies: 6
Views: 466

Re: CARES ACT 1099-R Distribution Code 1B is this correct?

... a CRD or just a general distribution from your Roth 401k. You will have to report a CRD on Form 8915 E and elect ... CRD will be penalty free with respect to the amount of earnings distributed from the Roth 401k. The 1099R coding ...
by Alan S.
Tue Jan 19, 2021 4:31 pm
Forum: Personal Investments
Topic: How to fix 401K mega backdoor Roth excess contribution
Replies: 2
Views: 304

Re: How to fix 401K mega backdoor Roth excess contribution

... supposed to send me a check for $67.33 from my Roth IRA account. Is that correct? I have not received any check. Now that I have approx. $1,400 in my 401K after-tax contribution bucket, does it matter ... need to return the 67.33 to you with allocated earnings as an excess contribution for 2020. ...
by Alan S.
Wed Jan 13, 2021 2:28 pm
Forum: Personal Investments
Topic: Excess After-Tax Contribution Correction - Need Help
Replies: 4
Views: 426

Re: Excess After-Tax Contribution Correction - Need Help

Hello Everyone, My employer's 401K plan allows after-tax contribution and in-service withdrawals (to a Roth IRA). I keep tracking both employee and employer contributions ... all of the previous after-tax contribution along with earnings to a Roth IRA at a different custodian. And due ...
by Alan S.
Mon Jan 11, 2021 12:20 pm
Forum: Personal Investments
Topic: Forgot to do in-service withdrawal/conversion of mega backdoor
Replies: 21
Views: 1691

Re: Forgot to do in-service withdrawal/conversion of mega backdoor

... per regulation: 1) Is there any world in which earnings can go into the Traditional 401k? Or when you say "back into the 401k", are ... the pro rata rule with respect to Traditional IRA -> Roth IRA backdoor? Does it kick in only when you actually ...
by Alan S.
Fri Jan 08, 2021 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Mega backdoor after-tax conversion to personal ROTH IRA
Replies: 22
Views: 1438

Re: Mega backdoor after-tax conversion to personal ROTH IRA

... In order to take 10k after-tax out of 401k I also need to take 50k pre-tax from other ... for your after tax contributions (and their earnings) in the after tax sub account. If the plan has a Roth 401k option, it is possible that an in plan rollover ...
by Alan S.
Tue Jan 05, 2021 9:40 pm
Forum: Personal Investments
Topic: Company allow after-tax contribution, but can I convert it to Roth IRA when I leave the company?
Replies: 24
Views: 1605

Re: Company allow after-tax contribution, but can I convert it to Roth IRA when I leave the company?

... but they must allow one direct rollover of the earnings on the employee after-tax contributions ... an indirect 60-day rollover of the latter to a Roth IRA. Unless I'm missing something, this still ... 2 checks in one day, which my employer's 401K custodian would not do. My comment is based ...
by Alan S.
Tue Jan 05, 2021 8:27 pm
Forum: Personal Investments
Topic: Questions on Mega Roth Conversion
Replies: 3
Views: 328

Re: Questions on Mega Roth Conversion

... test. I also understand that you can do the Roth conversion at any time. With that, it seems ... account balance is being rolled to the Roth 401k. While your 1099R will include a taxable portion, it should be very small and consist only of the earnings on the after tax contributions in this ...
by Alan S.
Mon Jan 04, 2021 10:06 pm
Forum: Personal Investments
Topic: Company allow after-tax contribution, but can I convert it to Roth IRA when I leave the company?
Replies: 24
Views: 1605

Re: Company allow after-tax contribution, but can I convert it to Roth IRA when I leave the company?

my company allow 401k ,roth 401k, and after-tax contribution, but don't allow Mega Backdoor ... not allow you to roll the after tax contributions and their earnings to either the Roth 401k OR your Roth IRA while still ...
by Alan S.
Tue Dec 29, 2020 2:30 pm
Forum: Personal Investments
Topic: Mega Backdoor - End of Year Deadline
Replies: 3
Views: 390

Re: Mega Backdoor - End of Year Deadline

... to guide me in my journey to test my employer 401K for mega backdoor. 1. Confirmed that my 401K ... 1. Deposit after-tax contribution check to a Roth IRA in January 2. Also in January, deposit ... to your Roth, then you would owe taxes on the earnings. When doing a 60 day rollover any taxes ...
by Alan S.
Sun Dec 27, 2020 2:18 pm
Forum: Investing - Theory, News & General
Topic: Covid Roth early withdrawal and earnings
Replies: 10
Views: 1017

Re: Covid Roth early withdrawal and earnings

... for a CRD and mandatory withholding only applies to qualified plans, not IRAs. But there is still default withholding. For a CRD from your 401k, you need to file Form W-4P if you want to decline withholding entirely. 2) For an IRA distribution there is no mandatory withholding for any distributions, ...
by Alan S.
Sat Dec 26, 2020 11:10 am
Forum: Personal Finance (Not Investing)
Topic: CARES Act money from Roth 401k to Roth IRA?
Replies: 37
Views: 2679

Re: CARES Act money from Roth 401k to Roth IRA?

... that the reps think that the repayment is non Roth funds (a pre tax 401k) to a Roth IRA, and in that case there would be taxes ... be repaid to a Roth IRA, and if at least the amount of earnings is repaid, there will be no taxes due. Of course, ...
by Alan S.
Thu Dec 24, 2020 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: CARES Act money from Roth 401k to Roth IRA?
Replies: 37
Views: 2679

Re: CARES Act money from Roth 401k to Roth IRA?

... in certain states or perhaps if you needed the Roth 401k to enhance your balance for a 401k loan, you would ... were done. Any additional balance will be Roth earnings by default. You are also correct that if a CRD ...
by Alan S.
Thu Dec 24, 2020 3:27 pm
Forum: Investing - Theory, News & General
Topic: Covid Roth early withdrawal and earnings
Replies: 10
Views: 1017

Re: Covid Roth early withdrawal and earnings

... there's the option of withdrawing $100k from 401k and IRAs penalty-free. The question is, is ... waive the extra and much larger penalty for Roth earnings, where you have to pay income tax on those Roth ...
by Alan S.
Thu Dec 24, 2020 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: CARES Act money from Roth 401k to Roth IRA?
Replies: 37
Views: 2679

Re: CARES Act money from Roth 401k to Roth IRA?

... repaid will not be subject to penalty. If a Roth 401k CRD is partially repaid, the amount attributed to earnings would be credited first for the repayments. For example ...
by Alan S.
Mon Dec 21, 2020 12:09 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth
Replies: 3
Views: 426

Re: Mega Backdoor Roth

... be able to go ahead with this mega backdoor Roth strategy, but would need to call anytime I ... the rep. Perhaps the rep is referring to any earnings in the after tax sub account, which must ... whatever. Elective deferrals (your pre tax 401k contributions) are not eligible for distribution ...
by Alan S.
Fri Dec 18, 2020 10:14 pm
Forum: Personal Investments
Topic: Reverse Rollover IRA to 401k
Replies: 2
Views: 188

Re: Reverse Rollover IRA to 401k

... my last employer a few years ago I rolled my 401k into a Traditional IRA to have more control ... would have implications for doing a back door Roth IRA die to the pro-rata rule. In hindsight ... of your IRA. 2) The reverse rollover and their earnings should be "distributable" upon ...
by Alan S.
Thu Dec 17, 2020 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: CARES Act money from Roth 401k to Roth IRA?
Replies: 37
Views: 2679

Re: CARES Act money from Roth 401k to Roth IRA?

... a CARES Act withdrawal of $100k from their Roth 401k. To keep things easy, $60k from the Roth 401k withdrawal ... 401k CRD is partially repaid, the amount attributed to earnings would be credited first for the repayments. For ...
by Alan S.
Wed Dec 16, 2020 8:34 pm
Forum: Personal Investments
Topic: Megabackdoor Roth 401k and backdoor Roth IRA 5 year rule
Replies: 11
Views: 869

Re: Megabackdoor Roth 401k and backdoor Roth IRA 5 year rule

... while you're still working, once you roll the Roth 401(k) into your Roth IRA the non-taxable portion ... My situation is - I am maxing out pre-tax 401k and I am going to try and max out after-tax ... a separate sub account that also holds the earnings on the after tax contributions, the more ...
by Alan S.
Wed Dec 16, 2020 6:20 pm
Forum: Personal Investments
Topic: Megabackdoor Roth 401k and backdoor Roth IRA 5 year rule
Replies: 11
Views: 869

Re: Megabackdoor Roth 401k and backdoor Roth IRA 5 year rule

If you roll your Roth 401k into your Roth IRA before all your IRRs (In plan Roth rollover) ... you did a Roth conversion of that amount in 2018. The small earnings portion of $20 will be subject to the 10% penalty if ...
by Alan S.
Sun Dec 13, 2020 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: After-Tax 401K approach and What happens if employer fails IRS Non Discrimination Testing
Replies: 7
Views: 740

Re: After-Tax 401K approach and What happens if employer fails IRS Non Discrimination Testing

... ACP testing failure that you rolled into your Roth IRA will have to be removed from your Roth ... made an excess regular Roth IRA contribution. Earnings while in your Roth will be calculated by ... made the excess Roth contribution. From the 401k plan, you will get a 1099R showing a direct ...
by Alan S.
Sat Dec 12, 2020 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: After-Tax 401K approach and What happens if employer fails IRS Non Discrimination Testing
Replies: 7
Views: 740

Re: After-Tax 401K approach and What happens if employer fails IRS Non Discrimination Testing

... ACP testing failure that you rolled into your Roth IRA will have to be removed from your Roth ... made an excess regular Roth IRA contribution. Earnings while in your Roth will be calculated by ... made the excess Roth contribution. From the 401k plan, you will get a 1099R showing a direct ...
by Alan S.
Mon Nov 30, 2020 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Complicated backdoor Roth situation
Replies: 9
Views: 647

Re: Complicated backdoor Roth situation

... 1. (2016) Rolled over a previous employers 401k to a Fidelity Rollover IRA 2. Contributed IRA ... (5500, 6000, 6500) (and never rolled them into Roth) 3. (2020) Rolled over a different employers ... non taxable (except for some small amount of earnings, if any) as long as you do not acquire ...
by Alan S.
Sun Nov 22, 2020 2:16 pm
Forum: Investing - Theory, News & General
Topic: Roth 401(k) to Roth IRA conversion - did I mess up?
Replies: 9
Views: 866

Re: Roth 401(k) to Roth IRA conversion - did I mess up?

... days to complete an indirect rollover to your Roth IRA. If you complete this rollover, you will ... be NO current taxes. Very similar to a pre tax 401k to TIRA rollover. In fact, if you only rolled over part of the distribution, the 26k of earnings are treated as being rolled over first. ...
by Alan S.
Mon Nov 16, 2020 5:49 pm
Forum: Personal Investments
Topic: Roth 401(k) rollover help
Replies: 13
Views: 689

Re: Roth 401(k) rollover help

... no intention of withdrawing the money from the Roth IRA but if he did to say buy a house, he would ... funds? Also, note that the 1099R for the Roth 401k distribution will show his contribution basis ... that exceeds the Roth IRA basis are Roth IRA earnings. Finally, below are the IRS Regs addressing ...
by Alan S.
Sat Oct 24, 2020 1:10 pm
Forum: Personal Investments
Topic: mega back door roth - in-service distribution requirement
Replies: 27
Views: 1482

Re: mega back door roth - in-service distribution requirement

... Your IRR, whether from your after tax non Roth contributions or from the pre tax balance is full part of your Roth 401k. The breakdown is simply for accounting purposes ... a Roth account the better. The reason is that the earnings will then be Roth earnings, whereas if the ...
by Alan S.
Tue Oct 13, 2020 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: 401K Overpayment - Ex Employer Asking for Money Back
Replies: 173
Views: 12403

Re: 401K Overpayment - Ex Employer Asking for Money Back

... for 2018 and 2019 + tax on the $6400 plus any earnings accumulated from 2018 until now right? ... adjusted for any gain or loss while in the 401k plan. Gain or loss while in the IRA is not ... you HAVE made a 2020 contribution to TIRA or Roth, you could remove it to create space to apply ...
by Alan S.
Sat Oct 10, 2020 2:46 pm
Forum: Personal Investments
Topic: 401k deferral question
Replies: 3
Views: 279

Re: 401k deferral question

... Now, there is a lag of 2-3 days when my 401k contribution actually hits Fidelity. Question ... 12 will show the total Code D (pre tax) or AA (Roth) deferral amounts, and if the total 402g limit ... income. If you then have the excess and any earnings returned by 4/15, the deferral will not ...
by Alan S.
Fri Aug 28, 2020 12:55 pm
Forum: Personal Investments
Topic: Roth 401k vs Roth IRA withdrawal rules
Replies: 3
Views: 315

Re: Roth 401k vs Roth IRA withdrawal rules

... taxes and ordering for withdrawals for the Roth 401k and Roth IRA accounts. I found this thread: https://www.bogleheads.org/forum/viewtopic.php?t=201337 ... 5 year waiting period required for these dollars. 4) Earnings - These can never be accessed without penalty while ...
by Alan S.
Wed Aug 19, 2020 3:07 pm
Forum: Personal Investments
Topic: MBR - After tax contributions in TIRA
Replies: 3
Views: 189

Re: MBR - After tax contributions in TIRA

... lucky enough to be able to do a mega backdoor Roth IRA through my employer’s 401k. My after-tax 401k contributions (the principal) and the earnings on it (a very small amount because I transfer biweekly) ...
by Alan S.
Sat Aug 01, 2020 6:41 pm
Forum: Personal Investments
Topic: In-plan conversions of after-tax contributions; does pro-rata rule apply?
Replies: 4
Views: 323

Re: In-plan conversions of after-tax contributions; does pro-rata rule apply?

... plan and our ability to convert these to a Roth 401(k) within my wifes retirement plan. I have ... types: Pre-tax 33% After tax - post 1986- 20% (earnings on after tax contributions is relatively ... sub account is to be distributed to the Roth 401k. If you have any doubts about your entry, call ...
by Alan S.
Tue Jul 28, 2020 6:43 pm
Forum: Personal Investments
Topic: Is there a RMD with a designated Roth account?
Replies: 8
Views: 552

Re: Is there a RMD with a designated Roth account?

... taken in any combination between the pre tax 401k account, after tax contributions in the pre tax account and the Roth account. See the following IRS Reg. 1.401(a)(9)-8, ... 401k limit that will eventually generate tax free earnings. Of course, it is better to find a way to roll ...
by Alan S.
Sun Jul 26, 2020 10:27 pm
Forum: Personal Investments
Topic: Tax Question on Excess Roth IRA Contribution and Commingled Rollover
Replies: 7
Views: 539

Re: Tax Question on Excess Roth IRA Contribution and Commingled Rollover

... employer? Moving the traditional IRA into a 401k would open up the possibility of a back door Roth. In this case, you would recharacterize the contribution ... (and I would prefer to keep it in a Roth where the earnings will now get the benefit of that). You should check ...
by Alan S.
Sun Jul 26, 2020 12:48 pm
Forum: Personal Investments
Topic: How to zero out a traditional IRA account?
Replies: 36
Views: 4742

Re: How to zero out a traditional IRA account?

... -Ask for a corrective distribution from the 401k. You, with the help of a tax preparer or BH ... an amended return for 2019. Later, -Complete a Roth conversion -Write an explanation of everything ... makes the corrective distribution adjusted for earnings unless you do not have other funds to ...
by Alan S.
Sat Jul 25, 2020 6:08 pm
Forum: Personal Investments
Topic: Roth IRA Distribution Questions
Replies: 5
Views: 624

Re: Roth IRA Distribution Questions

... taking distributions from our respective Roth IRAs to purchase a property in her country ... When I turn age 59.5 the Fidelity rep said my earnings would also be eligible to be taken without ... to be accurate. With respect to your 2018 Roth 401k rollover, keep that 1099 you received in Jan, ...
by Alan S.
Wed Jul 22, 2020 7:52 pm
Forum: Personal Investments
Topic: How to zero out a traditional IRA account?
Replies: 36
Views: 4742

Re: How to zero out a traditional IRA account?

... trying to help him/her to clean up a Backdoor Roth that had money remaining in a traditional IRA ... and I don't know if a rollover to/from the 401K more than once a year will be limited. What ... post tax money from the 401k with applicable earnings will probably be reported by the 401k administrator ...
by Alan S.
Thu Jul 09, 2020 11:37 am
Forum: Personal Investments
Topic: Can we do both backdoor Roth IRA and mega backdoor Roth IRA
Replies: 30
Views: 4105

Re: Can we do both backdoor Roth IRA and mega backdoor Roth IRA

1. Can I do mega backdoor Roth and backdoor Roth both? Is it allowed as per IRS? For the year 2020, pre tax 401k ($19,500) + employer contribution + after tax 401k ... Roth IRA are combined. You may have a few bucks of earnings in each rollover (conversion), which are the taxable ...
by Alan S.
Thu Jul 02, 2020 9:13 pm
Forum: Personal Investments
Topic: Excess Roth IRA contribution
Replies: 6
Views: 432

Re: Excess Roth IRA contribution

... made an excess contribution of around 5000$ to Roth IRA in 2018 and looks like I have paid penalty ... of the excess amount from your Roth IRA (no earnings distributed). You would then report this ... basically closing my roth ira as I only have 401k, so all money including earnings will be taken ...
by Alan S.
Fri Jun 19, 2020 7:53 pm
Forum: Personal Investments
Topic: Backdoor roth IRA mistake
Replies: 10
Views: 1175

Re: Backdoor roth IRA mistake

... lurker, first post. Last year, I did backdoor roth IRA contribution for the first time. I opened ... company accepts Rollover IRA money into 401k account. Can I rollover all money except $4900 ... be non taxable except for any small amount of earnings that causes the balance to exceed your ...
by Alan S.
Sat Jun 13, 2020 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: backdoor Roth pro rata rule mistake
Replies: 8
Views: 972

Re: backdoor Roth pro rata rule mistake

... 14) is the amount that should not have been rolled over to the solo 401k, but better to let Spirit Rider, Alan S., and any others more familiar with that arcana comment. That is correct. That amount and earnings must be removed from the 401k. What the process after this is topic ...
by Alan S.
Sun Jun 07, 2020 4:06 pm
Forum: Personal Investments
Topic: When can you withdraw from the Mega Backdoor Roth?
Replies: 46
Views: 3016

Re: When can you withdraw from the Mega Backdoor Roth?

... an IRR from the after tax sub account to the Roth 401k account within your 401k. A distribution directly from ... had you rolled the after tax contributions and their earnings to your Roth IRA instead. According to the most ...
by Alan S.
Fri May 29, 2020 11:42 am
Forum: Personal Investments
Topic: Rollover of old 401k to new 401k: Earnings on After-tax money
Replies: 1
Views: 151

Re: Rollover of old 401k to new 401k: Earnings on After-tax money

I have an old 401k consisting of pretax contributions & earnings and after-tax contributions & earnings (no Roth). I am considering rolling it over to my current 401k for simplicity ...
by Alan S.
Thu Apr 30, 2020 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Converting to a ROTH via CARES Act?
Replies: 16
Views: 1771

Re: Converting to a ROTH via CARES Act?

... that would be treated as an excess regular Roth contribution and corrected in the usual manner. ... just because of the penalty but also the lost 401k earnings before I moved the money. Does this risk alone ...
by Alan S.
Wed Apr 29, 2020 12:42 pm
Forum: Personal Investments
Topic: Can a person rollover A 2020 Roth RMD?
Replies: 8
Views: 901

Re: Can a person rollover A 2020 Roth RMD?

My wife took a RMD from a Vanguard Individual Roth 401k date 2/2/2020. Is it true that she can roll it over ... in her case). The 5% would therefore be the amount of earnings in the Roth 401k account. But with a rollover to ...
by Alan S.
Wed Apr 22, 2020 10:47 pm
Forum: Personal Investments
Topic: Excess contribution to Roth IRA - paying taxes on any earnings
Replies: 23
Views: 1200

Re: Excess contribution to Roth IRA - paying taxes on any earnings

... your 2017 conversion. Because you did the 86k 401k rollover in 2017, your conversion of around ... your MAGI limit for purposes of making regular Roth contributions. But you will have to determine ... will not owe tax or penalty on the amount of earnings distributed because you will never distribute ...
by Alan S.
Tue Apr 21, 2020 1:51 pm
Forum: Personal Investments
Topic: query on 401k to Roth 401k conversion
Replies: 9
Views: 454

Re: query on 401k to Roth 401k conversion

Yes, these are called "In Plan Roth Rollovers" or IRRs. These function much ... do not offer them, whereas they do offer Roth 401k elective deferrals. Your plan may or may not ... when a distribution is taken from a Roth 401k, earnings are pro rated into all distributions. Further, ...
by Alan S.
Sun Mar 29, 2020 5:38 pm
Forum: Personal Investments
Topic: will I pay a 10% penalty for in plan 401k roth conversion age less than 59.5
Replies: 4
Views: 377

Re: will I pay a 10% penalty for in plan 401k roth conversion age less than 59.5

If you do an in plan Roth rollover in a 457b plan, there is never a penalty ... that money from the Roth 457b. However, Roth (401k, 403b or 457) non qualified distribution are not ... Your contributions come out pro rated with any earnings in the plan, and the earnings portion will ...
by Alan S.
Mon Mar 16, 2020 11:34 pm
Forum: Personal Investments
Topic: Mega Roth Conversion taxable amount issue
Replies: 4
Views: 252

Re: Mega Roth Conversion taxable amount issue

... Last year I did two transactions in my 401k account: 1) in-plan Roth conversion of $3000 (from pre-tax to 401k Roth) 2) ... of $10000 ( after tax contribution($9000) + its earnings($1000)) to my Roth IRA account. In my 1099R form ...
by Alan S.
Tue Mar 10, 2020 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Q re: 2018 Excess Contribution - Return/Distrib in 2019 (for Alan S)
Replies: 3
Views: 212

Re: Tax Q re: 2018 Excess Contribution - Return/Distrib in 2019 (for Alan S)

Regardless that this excess was from a 401K conversion, since I already paid taxes on it ... what makes it the same as a "regular Roth IRA contribution"? No, as an excess annual ... which must be distributed with applicable earnings out of the Roth IRA. Same situation if an ...