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Subject Expert
Guys, he's saying MEGA backdoor Roth. "Your bank" and IRAs are not in the picture.
OP, go to your HR at work, the 401k website or whoever manages it, and ask them if your plan allows these two things:
1) After tax contributions in excess of the elective deferral limit.
2) In service conversions.
If so you are golden. If not you can't do it.
If you can do it ask them how and pay attention to what they say.
Some basic definitions for the thread:
Backdoor Roth - contribute 7k to Ira and convert it to Roth
MEGA Bdr - rollover 401k/employer plan into Roth
Subject Expert
And specifically an in service, in plan conversion of an after tax 401k contribution in excess of the deductible deferral limit, to Roth 401k.
Contact your bank that you are doing it with. It was way simpler than I expected and the bank should provide you with the required paperwork to settle taxes at year end. All I had to do was an electronic transfer to a Roth IRA account from my traditional IRA account. Oh yea, and plan for all the taxes this year since I rolled a few years at once 😅
I'm seconding C1. My bank did a really good job of walking me through it. I was super nervous because it seems complicated but it really wasn't.
I definitely agree with everyone above. I would contact your bank. I have a really great bank and they walked me through all of it and made the process seamless.