Mega Backdoor Roth

[Mitch P.]

I am self-employed and have an AT Roth holding account, a Solo 401 Roth account, and an Individual Roth IRA, among other accounts. In 2020 and 2021 I sent funds to the AT holding account and then converted to the Solo 401 Roth account. Now for 2022 I have sent funds over to the AT holding account. Even though this was all setup originally in 2020 to finalize funds from the AT account to the Solo 401 Roth account, am I able to take the current funds that are in the AT holding account and transfer them to the Individual Roth account instead of the Solo 401 Roth that I have normally done in 2020 and 2021? I have changed my mind and think the Roth IRA is better for me moving forward rather than the Roth 401K b/c I don’t have to take forced distributions at age 72 and I can take principal out after 5 years of opening my Roth IRA. Thank you.

Mitch P.

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[George Blower]

Thanks for your good post!

A Solo 401k owner/participant who has previously made voluntary after-tax solo 401k contributions which were converted to the Roth Solo 401k is free to make additional voluntary after-tax contributions (subject to the Solo 401k contribution rules) which are then converted to a Roth IRA.

Learn more: https://www.mysolo401k.net/mega-backdoor-roth-solo-401k-transfer-to-roth-ira/

George Blower

My Solo 401k Financial

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8004897571 mysolo401k.net

[Selina Y.]

Secure Act 2.0 = no more RMD (Required Minimum Distribution) from Roth401K.

Selina Y.

513-400-5501 Investor, Private Equity, Notes, Commercial Real Estate, Mineral Rights

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[Dan D.]

No more required RMD with Roth 401(k), new legislation. – https://www.cnbc.com/2023/01/03/3-changes-in-secure-2point0-for-required-minimum-distributions.html

Also a 401(k) may offer substantially more asset protection than a Roth IRA in states like California.

Dan D.

S Corp

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