Realized I’ve been contributing all post tax dollars to my 401k for the past 1.5 years. Am I able to convert this to a roth somehow? What kind of tax liability might I have? Should I switch to pre tax contributions?

like
Posting as :
works at
You are currently posting as works at

How was that even possible? Do they take it from your paycheck or are you making additional contributions?

like

PwC allows pre or post tax contributions. Post tax is different from a Roth 401k and doesn’t have the $19.5k annual max. Comes out of my paycheck

You can roll a Roth 401k into a Roth IRA when you leave the company. If it’s a Roth 401k you won’t have any tax liability.

like

call benefits express, pretty straightforward to rollover to IRA

like

Is it a roth 401k? What's the issue?

like

Yes you can rollover. If pwc offers in-service withdrawals you can do it now (note this is how mega back door roths work) or you can do it when you leave if not

In both scenarios you'll have to pay tax on any investment gains that have occurred though

like

Hmm. Maybe consider leaving those funds as is, then adjust your contributions to pre tax (traditional 401k). Then when you leave A
PWC transfer the pre tax funds to a Traditional IRA, and the post tax funds to. Roth IRA.

I wouldn’t call this a mistake per say, as many people believe post tax 401k is the way to go.

like

Do it all at once or it’ll continue growing and being taxable, especially if your bracket will go up in the next few years. Technically it should be the same now or later for present value, but I don’t trust tax rates to go down in the future and if you retire well, your rates could be higher than now.

Post tax dollars isnt specific. Do you mean an After Tax 401k or Roth 401k? If after tax, an in-service withdrawal for mega backdoor roth will result in paying income tax on growth only. If Roth, you’re fine.

Flip it to Roth or Traditional if your company offers a match. After tax dollars aren’t matched.

like

Look into your policy. You should be able to convert it to a Roth. For example, our policy allows for unlimited conversions at any time. You will have to pay tax on the gains.

I don’t understand your question(s). Sorry

Related Posts

If company only matches 6% should I only put 6% of income into 401k? Does it make sense to put more to lower tax bracket?

like

How hard is it to move from freelance to full time in an agency? Chatting about a freelance strategist position at R/GA but don’t really want to give up the benefits of full time

like

I have been with my current company for about 3 years now and currently at 75k plus employer paid benefits and decent pension plan. Due for review next month and expecting to be offered a 5k raise. However with 6 years of relevant experience I would like to be close to 85k. We hireda new team member for the same role as me as the business is growing. They came in at 75k which bothered me a little because I pretty much began this department and put in a lot of processes. More in comments.

like

I’m a first time founder of an early stage health tech startup focused on helping people discover doctors and wellness solutions. Looking to network and find a co-founder!
I’m in pre-launch of a q&a product feature for people to ask questions and healthcare professionals to answer these questions.
If you have experience taking these products to market, what are effective outreach strategies?

like

AE position for healthcare in DC area; COLA from previous salary/location (AE role) says it should be $75k. Don't think that's realistic - any insights?

like

In GMS is it mandatory to declare loans, insurance etc. ? EY Is there any issue if somebody forgot to declare and signed?

like

Anyone at Deloitte working within healthcare regulatory willing to chat?

Any healthcare executives here?

like

After 3 years of dealing with the worst firm I've ever had the displeasure of working for, I finally landed my dream gig at a small specialty firm. The people at the new firm are all SMEs featured in and contributors to the most notable business publications in the world, less than 100 employees, better benefits, unlimimted PTO, doubled my pay and landed a senior role.

Keep looking for what you want and deserve. I'm happy to be forging a better path away from what I've had to endure.

likeuplifting

Expecting the 6th Jan SEC meet to rock crypto markets - liquidating and holding on GDAX in USD with Limit Orders - cash is also a position. #HODLifSTUPID

Are there any well being benefits like gym reimbursement, work from home set up, sports equipments etc provided by Oracle?

likefunny

Mother has a decent nest egg ($3M) and lives in an extremely LCOL area. Currently manages money through RBC, however the fees are a gross operating expense of 0.36%. What do you all recommend? I’m not savvy enough to manage it myself however I know that fees can stack up and kill returns. Would appreciate any insight/advice/snark.

like

Pharma companies with great tuition reimbursement. Thanks!

like

Bay Area licensed producer in life accident and health Seeking a producer position in employee benefits where there is a good base salary + commissions pay structure, or a salaried position in marketing or account management/benefits consulting where I can earn 50% commissions on groups I sell in addition to my salary. These are my current options so I know it exist. I’m an account manager who is licensed and can write my own groups, and I will get 50% of the commission.

Hyatt free night CAT 1-7. Anyone want to buy this off of me? Can book with globalist benefits.

like

Current care coordinator and full time nursing student looking for a remote healthcare job that pays well and is flexible for students…any suggestions?

Does anyone knows a company that is hiring. I've worked with health insurance for over 20 years. I am stagnated on my current job. The salary I am looking for is $48,000 or more. I live in greenville, sc

like

How much stock do you put on benefits? I have two offers with stark differences in benefits. Job 1: role I want, but benefit sucks (2 weeks paternity leave, 20% coinsurance). Job 2: role is okay but higher level and great benefits (16 weeks paternity, 0% coinsurance, 5 more days of vacation). Total comp is the same though. I wonder if I should just focus on role but Job 2 is a large company, so I can move around after 2-3 years I’d expect. Thoughts?

like

Hi Fishes, I have recently joined Ericsson. What are yearly hikes and benefits I can expect? Please share your valuable feedback. Thanks in advance.@Ericsson

likesmart

Is there anyone here who is a UX strategist? I’m looking to make a change from the healthcare industry to UX and I think strategy or research is where I’d like to land but would love to talk to someone currently in this field!

like

More Posts

I’m looking to get my first job Online i need help please…

like
like

My grandmother passed away i requested unpaid leave (i took 11 days of paid leave last month) to join ritural and help my parents as they are aged persons but my manager denied and his behaviour was worst like who cares what can I do please suggest it's a 3rd party company.

like

Hey all,
I have 5 years experience in SEO, 3.5 years at an agency and 1.5 in-house. Would love to know what the average salary for an SEO manager / Senior SEO manager is?

like

I use ring central but people keep saying they're having trouble hearing me when I'm on my the mobile app. On the computer it's fine. Does anyone have suggestions? Any better service provider?

like

Are you able to get performance reports even when you pass the exam? Curious to look at mine but cant seem to find where to get it. Testing through New Jersey if that matters

like

what is the average cost of living(minimalist life) in bangalore for 2 people for location like Whitefield.

like

Hey folks,
Just curious to know if A&M has an official bowl here. It doesn't appear on my search. I'd be nice if y'all could drop a link in case, thanks 🥂

like

For resumes, what is the best format? Should there be a summary or skills section at the top, or both? When should the resume be 2 pages based upon YOE. Haven’t updated my resume in awhile so would like feedback on what to do to make it stand out.

like

I am working in nagarro from last 1.6 years now with 3.5 ctc now I got offer from X company of 9 lpa will nagarro match the offer??

What’s the hair salon situation now? Any recommendation for Asian Male straight hair?

like

What's a good % of your gross income to be spending on housing? Does it differ if you're paying the mortgage vs renting?

Can anyone suggest or refer me in the company for Power platform and SharePoint online having total experience of 2.6

Do you watch all the Super Bowl ads before the game or do you wait til Sunday?

like

Do we get bereavement leave in wipro? if yes then how many?

Anyone from Infosys who joined Deloitte in recent past? Need help in filling the New Hire Registry. What PF and UAN should we fill considering that the PF at Infy is managed by the trust. Pls help!

like

I heard EY is expanding their tech consulting practice and I’d love to learn more. Anyone open to chatting or sharing experiences?

like
Post Gif
like

Seat belt extender requested by the passenger sitting next to me! #ffs

like

Additional Posts in FIRE Financial Independence Retire Early

Anyone have a net worth/budget excel tracker they want to share?! : ) prefer not to use the apps.

like

Anyone here retire in late 30s or know someone that has?

Where do I begin figuring out the actual execution of retiring? e.g if net worth is > 4mm at age 35, how would one figure out what FIRE lifestyle would be now versus coasting with an income for a few more years? I realize this is a pretty dumb question.

like

Added this in the personal investment bowl but also wanted to get advice from the fire bowl! Thank you!

Post Photo
like

I’m contributing post-tax 401k offered by my employer to take advantage of the mega backdoor Roth. How often do people roll it over to their Roth IRA account? Like every month? I understand that any gains rolled over would be subject to tax but don’t expect it much given the market is down currently.

like

Do you spread your investments in ETF products that track the same index? IE VOO and SPLG.

Was just thinking the other night if you drop it all (or a large part) in VOO and they have some unheard of scandal that somehow slipped by audit your path to FIRE could be hurting.

Am I overthinking here?

like

Can someone explain the Roth conversion ladder to me like I am idiot? Which is what I am 😎.

HHI over $350k and can’t do backdoor Roth because I have tIRAs…

like

If company only matches 6% should I only put 6% of income into 401k? Does it make sense to put more to lower tax bracket?

like

I’m buying a home! It’s a little tight but here is my monthly cost breakdown ($9k/mo take home):

$3k mortgage
$500 for 15 months for new floors
$210 for 12 months for roof repairs
$300 groceries ($75/week)
$100 eating out
$150 estimated utilities
= $4260

Leftover = $4740

Investment Allocation:
$2k in HYSA
$2.2k in VTI
$540 leftover just in case

Is this a good budget to stick to? Also I may be able to subtract $800-$900 because I’m planning on renting out a room!

like

Mother has a decent nest egg ($3M) and lives in an extremely LCOL area. Currently manages money through RBC, however the fees are a gross operating expense of 0.36%. What do you all recommend? I’m not savvy enough to manage it myself however I know that fees can stack up and kill returns. Would appreciate any insight/advice/snark.

like

What are the easiest / least time consuming 2nd careers? Ideally something where you can make your own hours or don’t demand more than 10-20 hours a week

like

If you had an extra 50K laying around and wanted to take advantage of the recent correction in growth stocks, what you invest in? ETFs or individual stocks welcome. Won’t need the funds for at least 6-12 months

like

Single and spending 40k a year (rent, expenses). how much do you all spend?

like

How much is your emergency fund? My husband and I are DINKS with 5K monthly expenses but (because we are very privileged) live near family who could help us if something happened. We only keep 5K in our emergency fund because I want to invest as much as I can in index funds.

like

Any investment property owners here? How did u land the decision to take the plunge? I know diversification is important, but why didn’t h instead go the ETF/stocks route?

like

Is there a limit on the amount of T-bills I can purchase in a year? I’ve already put $10,000 in a Series I savings bond. Now looking to purchase short-term T-bills during the bear market. Appreciate the help.

like

Last year I started funding my Roth IRA through Vanguard in a Target Retirement Funds. After reading a few post about the tax disadvantage of using a Target Retirement Funds, I am thinking I need to shake things up. Would you suggest moving the funds in Mutual Funds, such as VTSAX? Let me know your thoughts and best strategy to make the switch with minimal tax effect.

like

Thoughts on robo-advisor accounts? The ones that take your spare change of every purchase and round it up? Betterment, Acorn. I have to imagine it’ll take quite some time for $$ to accumulate that way?

like

Hey folks, very new to investing. I want to hold SP 500 in my Roth IRA. What's the major difference between Vanguard SP 500 ETF and the mutual fund which also tracks that index? Only difference I know is that vanguard mutual fund requires 3000 min investment whereas ETF doesn't. What other differences are there?

like

Am I doomed? I’m 36. Huge partier and spend $ like its going out of season. Make about $215k all in and have little savings. I just have terrible savings habits and just enjoy living for the moment.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal