Hey this was really really well explained. If you’re trying to grow your presence on RUclips maybe try a shorter form style like shorts. I feel like it’s hard for the average person to find these But you definitely have what it takes to get many thousand if not tens of thousands more subscribers!
@@sophoswealthmanagement thank you. One last question of clarification, upon separation from Amazon can these funds be moved to a Roth IRA? I’m assuming the employee contributions can be, but the gains would have to be moved to a Traditional IRA.
@@alisacallender290 Yes, you can roll your funds into a Roth IRA upon separation from Amazon. All the Roth 401K funds, including their gains, could be rolled into a Roth IRA upon separation from Amazon. You wouldn't want to move them to a traditional IRA.
Can I do a mega back door roth 401k if my plan allows for after tax contributions and in plan conversion? Are there prorata tax penalties if I have a traditional ira and roth ira outside of my work plan ? I only plan to convert my after tax contributions to my Roth 401k. Thanks.
Yeah, any plan that allows for after-tax contributions combined with an in plan conversion should allow you to do the mega backdoor Roth. The pro rata rule does not apply when you do a 401K backdoor conversion so money in a traditional IRA will not impact your ability to do the mega backdoor roth.
@@sophoswealthmanagement Thanks for the info. I need to look into this. I just found out this is an option with my plan. I was just worried about paying taxes because I have traditional and Roth IRA's outside of my work plan. I really don't understand the pro rata rules. Some info I read says I would have to pay taxes unless it's just on a backdoor IRA and not the mega backdoor 401k Roth in plan conversion.
I have been doing after tax conversion on my fidelity. However, I don't see money in my Roth IRA account. Are all those contribution money (regular 401k + megabackdoor after tax conversion) supposed to be in Amazon 401k plan OR do I have to manually move to Roth IRA? thank you!
You want to make sure you max out your employee contributions ($23K in '24) before you do the mega backdoor Roth. Your contributions can be either Roth or Traditional 401(K) contributions. That way you receive the maximum match from Amazon. It's also just easier to make Roth or Traditional 401(K) contributions so you want to make sure you've hit your limit there before switching to the after-tax contributions that allow you to do the mega backdoor.
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Hey this was really really well explained. If you’re trying to grow your presence on RUclips maybe try a shorter form style like shorts. I feel like it’s hard for the average person to find these
But you definitely have what it takes to get many thousand if not tens of thousands more subscribers!
Once the in plan conversion is completed, are you limited to investing in only the funds inside the 401k or can you invest in other etfs/index funds?
You're still limited to the funds inside the 401K
@@sophoswealthmanagement thank you. One last question of clarification, upon separation from Amazon can these funds be moved to a Roth IRA? I’m assuming the employee contributions can be, but the gains would have to be moved to a Traditional IRA.
@@alisacallender290 Yes, you can roll your funds into a Roth IRA upon separation from Amazon. All the Roth 401K funds, including their gains, could be rolled into a Roth IRA upon separation from Amazon. You wouldn't want to move them to a traditional IRA.
@@sophoswealthmanagement thank you!
Can I do a mega back door roth 401k if my plan allows for after tax contributions and in plan conversion? Are there prorata tax penalties if I have a traditional ira and roth ira outside of my work plan ? I only plan to convert my after tax contributions to my Roth 401k. Thanks.
Yeah, any plan that allows for after-tax contributions combined with an in plan conversion should allow you to do the mega backdoor Roth. The pro rata rule does not apply when you do a 401K backdoor conversion so money in a traditional IRA will not impact your ability to do the mega backdoor roth.
@@sophoswealthmanagement Thanks for the info. I need to look into this. I just found out this is an option with my plan. I was just worried about paying taxes because I have traditional and Roth IRA's outside of my work plan. I really don't understand the pro rata rules. Some info I read says I would have to pay taxes unless it's just on a backdoor IRA and not the mega backdoor 401k Roth in plan conversion.
I have been doing after tax conversion on my fidelity. However, I don't see money in my Roth IRA account. Are all those contribution money (regular 401k + megabackdoor after tax conversion) supposed to be in Amazon 401k plan OR do I have to manually move to Roth IRA? thank you!
The after-tax conversions should be in a Roth 401K at Amazon. You won't be able to move them outside the plan unless you leave Amazon.
What would be the difference in doing the mega back door
Or roth. Amazon mathes my roth but not my after tax
You want to make sure you max out your employee contributions ($23K in '24) before you do the mega backdoor Roth. Your contributions can be either Roth or Traditional 401(K) contributions. That way you receive the maximum match from Amazon. It's also just easier to make Roth or Traditional 401(K) contributions so you want to make sure you've hit your limit there before switching to the after-tax contributions that allow you to do the mega backdoor.