After tax 401k question

DriveInDriveOut

Inordinately Right
Does ups's after tax 401k plan allow for in plan conversions to a Roth 401k?
Doubt it, call and ask.
I'm almost positive you can in service backdoor the 5% after tax option into a Roth IRA though. Tax would be owed on any gains since the contribution. You'll have a lot more fund options in a Roth IRA too.
 

DriveInDriveOut

Inordinately Right
Why would you need an after tax 401k if a roth 401k is available? All fulltimers really should be doing roth contributions. Pension plus roth is best retirement tax plan.
The mega backdoor Roth allows you to save a maximum of $61,000 in your 401(k) in 2022. The regular 401(k) contribution for 2022 is $20,500 ($27,000 for those 50 and older) and you can put an additional $40,500 of after-tax dollars into your 401(k) account.

The mega backdoor Roth enables you to take the after-tax dollars you contribute and roll them into a Roth IRA.
 

Gabba

It's a vicious cycle
there are no in-service rollovers with the teamster plan. you can only roll over the aftertax401k when you end your employment with UPS. or unless they change the rules in the future.
 
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Gabba

It's a vicious cycle
Why would you need an after tax 401k if a roth 401k is available? All fulltimers really should be doing roth contributions. Pension plus roth is best retirement tax plan.
because the aftertax401k does not count toward the contribution limit of the roth401k. one can make aftertax401k contributions in addition to maxing their Roth contributions.
 

Gabba

It's a vicious cycle
there are no in-service rollovers with the teamster plan. you can only roll over the aftertax401k when you end your employment with UPS. or unless they change the rules in the future.
i thought about it after i said it, realizing that i was just parroting what i've been told. so I called them, and it seem's i might be wrong, inservice rollovers to a set of IRAs roth and traditional may be available for just the aftertax401k portion of our accounts. I don't feel comfortable saying it's definitely possible, but Imma try to see if I can do this and if i can i'm going to do it, and if i do make it happen i will start saying so.
 
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