Make sure this works the way you think.I'm guessing this is a decision many on this forum have had to make.
How best does one decide whether to contribute to the mega backdoor Roth in this case, and if so, how much to contribute?
The MBDR is two parts. The after-tax contributions and then the ability to do an in-service rollover to an external Roth account. If you can't to the latter, then it's not as valuable. Without that option, the earnings on the after-tax contributions are taxable, basically like a traditional IRA that has non-deducted contributions.
Assuming you can roll it out, the benefit of regular taxable contributions are that you can access the funds at any time. You can use them for margin loans, etc.
With the Roth, you can't access the earnings but can (with certain restrictions) access the contributions.
Statistics: Posted by exodusNH — Thu Feb 08, 2024 12:33 pm — Replies 1 — Views 48
