Hi, Kind of new to these concepts and trying to understand few stuff: 1. Can we convert Roth 401k to roth IRA later to get rid of the distribution requirements? Any tax or pro-rate factors to worry about? 2. We can make after tax contributions if company allows and then do in-plan roth conversion as mega backdoor roth IRA, how often we can do that and where does the after-tax dollars stay before you do that? Does after tax account has only fix investments to choose from? 3. Can we convert traditional IRA to roth ira? I understand this will be needed to pay taxes on gains. For example, If we mistakenly contributed excess to Roth IRA(after tax) and did the recharacterization(transferred the shares from roth IRA to traditional IRA in Fidelity) and now can we do roth conversion after the holdings are 1 yr+ long term? 4. Can we convert pre-tax traditional 401k to roth 401k/roth IRA and pay the taxes? Any negative implications? 5. What is the situation with respect to taking loan or early distribution for first time home buyers in traditional 401k, roth 401k and roth IRA? #investments #roth #401k
There’s a back door way to get money into a Roth IRA. But if your TC is higher than 105K a year you aren’t supposed to be able to contribute anything to a Roth IRA. If you make less than that, you can put in up to $5,500 a year into the Roth IRA .