In-plan Roth 403(b) rollover from after-tax contribution

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
OCDinvestor
Posts: 21
Joined: Thu May 09, 2019 2:16 pm

In-plan Roth 403(b) rollover from after-tax contribution

Post by OCDinvestor » Wed Sep 11, 2019 1:31 pm

My retirement plan allows after-tax contributions after I max out the pre-tax employee contribution. They also allow us to do in-plan Roth conversions, including of this after-tax money, for which the only taxable amount would be the earnings that accumulated since contributing.

Is this essentially like a mega backdoor Roth? My understanding was that the mega backdoor Roth was when it allowed in-service distribution (ie: without leaving the job) on after-tax contribution.

This seems like an analogous process, but the money can stay in the employment retirement plan.

Is this legal?

magicrat
Posts: 717
Joined: Sat Nov 29, 2014 7:04 pm

Re: In-plan Roth 403(b) rollover from after-tax contribution

Post by magicrat » Wed Sep 11, 2019 1:48 pm

Yes, this is a megabackdoor Roth, and it is legal!

Post Reply