The Mega Backdoor Roth IRA is a method to contribute more money to a Roth IRA beyond the $5500 per year.
I was able to contribute 30K USD per year into a Roth IRA using this method.
It requires a compatible 401k plan. What is compatible?
1) Allows post-tax 401k contributions (NOT to be confused with Roth 401k contributions)
2) Allows in-service withdrawals
Requirement 2 is not strictly needed, but helps transfer the money into a Roth IRA sooner. Without requirement 2, a person would need to wait until after leaving a company to do the transfer.
Do many companies meet these requirements ?
Here's my list of companies known to have 401k plans that are compatible with the Mega Backdoor Roth IRA. Please add to the list in the comments!
Google
Cisco
Genentech
Mediatek
US Steel
Western Digital
US Steel meets the requirements for mega backdoor roth; it is administered by fidelity.
ReplyDeleteBest wishes.
George.
Thank you for the information! Added to the list
DeleteSeagate Technology allows this. It is also administered through Fidelity. Thank you for the info as I was trying to find out if it's offered at Western Digital.
ReplyDelete