Mega Backdoor Roth request - Sample Email?

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Topic Author
eer_no_evil
Posts: 78
Joined: Thu Jun 29, 2017 1:50 pm

Mega Backdoor Roth request - Sample Email?

Post by eer_no_evil »

Good morning!

Hope everyone is having a good week so far.

Wondering if anyone would share a sample email they’ve used to successfully request having the mega backdoor Roth option added within their 401k plans? I have the ear of the total rewards vp, but would love a template if one exists.

Much appreciated!
Topic Author
eer_no_evil
Posts: 78
Joined: Thu Jun 29, 2017 1:50 pm

Re: Mega Backdoor Roth request - Sample Email?

Post by eer_no_evil »

Bump, bump
RetiredAL
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Joined: Tue Jun 06, 2017 12:09 am
Location: SF Bay Area

Re: Mega Backdoor Roth request - Sample Email?

Post by RetiredAL »

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Coolguy8877
Posts: 146
Joined: Thu Oct 03, 2019 8:41 am

Re: Mega Backdoor Roth request - Sample Email?

Post by Coolguy8877 »

This is probably very dependent on company size and offerings. I’ve been trying to see if my megacorp will lift the cap on after-tax contributions for over 2 years after learning they put the cap in place over 15 years ago to comply with discrimination testing and haven’t given it a second thought since. This is the case despite there being significant changes in the employee earning spectrum since then.

You could simply start by asking if they have considered working with their 401k custodian to allow employees to make after-tax (non-Roth) contributions. If they say no you can then determine if they are aware of this offering and the benefits associated (mega backdoor Roth). If they have considered it but elected not to add the option you could learn more about their rationale and come up with a plan to motivate them to reconsider.
Soon2BXProgrammer
Posts: 3289
Joined: Mon Nov 24, 2014 10:30 pm

Re: Mega Backdoor Roth request - Sample Email?

Post by Soon2BXProgrammer »

eer_no_evil wrote: Thu May 13, 2021 11:06 am Good morning!

Hope everyone is having a good week so far.

Wondering if anyone would share a sample email they’ve used to successfully request having the mega backdoor Roth option added within their 401k plans? I have the ear of the total rewards vp, but would love a template if one exists.

Much appreciated!
Rule #1, don't ask for the megabackdoor Roth.

Does your plan offer "in plan Roth conversions"? if so, and your plan is reasonable do not ask for "in service withdrawals".

If the first answer is yes, then just say. "I'd really like to save above the 19500 deferral limit, can our plan add the ability for "non-deductible after tax contributions" so that participants can reach the higher plan limit? I realize, that the plan might still need to pass compliance testing, so if this needs to be done in phases, to reduce the risk of compliance failure, I understand"
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
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