409A/Backdoor Roth - Question

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Malinois000
Posts: 156
Joined: Sun Feb 26, 2017 6:08 pm

409A/Backdoor Roth - Question

Post by Malinois000 » Fri Sep 21, 2018 6:56 am

I'm planning to retire next year. I have participated in a 409A Deferred Comp over the years which has a 5 year payout after I retire. Will the taxable payout of a deferred plan allow me to continue funding my Backdoor Roth if desired?

retiredjg
Posts: 39896
Joined: Thu Jan 10, 2008 12:56 pm

Re: 409A/Backdoor Roth - Question

Post by retiredjg » Fri Sep 21, 2018 8:15 am

What is required for a Roth contribution is "compensation".

Publication 590A has some examples of what compensation is or is not. In general, payout from a retirement plan is not compensation. I don't know anything about a 409A, but I would expect that it is not compensation.

Topic Author
Malinois000
Posts: 156
Joined: Sun Feb 26, 2017 6:08 pm

Re: 409A/Backdoor Roth - Question

Post by Malinois000 » Fri Sep 21, 2018 3:25 pm

retiredjg wrote:
Fri Sep 21, 2018 8:15 am
What is required for a Roth contribution is "compensation".

Publication 590A has some examples of what compensation is or is not. In general, payout from a retirement plan is not compensation. I don't know anything about a 409A, but I would expect that it is not compensation.
Thank you!

Post Reply