Post tax 401K [vs. backdoor Roth]

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kaboora
Posts: 4
Joined: Sun Nov 25, 2018 4:01 pm

Post tax 401K [vs. backdoor Roth]

Post by kaboora » Mon Nov 26, 2018 1:57 pm

Hi All, I want to know your opinion on after tax 401K plan in general which is being offered by my employer. How do you compare it with backdoor Roth to catch up on retirement savings?

Soon2BXProgrammer
Posts: 765
Joined: Mon Nov 24, 2014 11:30 pm

Re: Post tax 401K [vs. backdoor Roth]

Post by Soon2BXProgrammer » Mon Nov 26, 2018 2:42 pm

kaboora wrote:
Mon Nov 26, 2018 1:57 pm
Hi All, I want to know your opinion on after tax 401K plan in general which is being offered by my employer. How do you compare it with backdoor Roth to catch up on retirement savings?
post tax, or more commonly called "after tax 401k" contributions, are one part of the "mega back door roth".. they make sense if your employer offers either "in service withdrawls" prior to retirement age of aftertax funds to do a rollover to a roth ira, or in plan conversions to Roth.

if neither of these are offered, and you arent close to terminating your employment with that employer, it isn't the best deal.

if you have one of the rollover options, its basically the same type of thing as a "backdoor roth".

i do both. backdoor roth and megabackdoor roth (aftertax 401k -> roth ira)

krow36
Posts: 2280
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: Post tax 401K [vs. backdoor Roth]

Post by krow36 » Mon Nov 26, 2018 2:45 pm

Have you read the Wiki on the mega-backdoor Roth? https://www.bogleheads.org/wiki/After-tax_401(k)

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