Anyone know if the Fidelity SPF 401k allows a Mega Backdoor Roth?
11 replies (most recent on top)
Dont believe you. Your probably the IRS trying to trick a bunch of us just so youse can get more blood from us turnips. So then you can pay for gummint dei and USAIDS. Go fu-k yourself revenoors!
The limit on after-tax 401(k) contributions is there because the IRS wants to make sure higher earners don’t get too much of an advantage over everyone else. Companies have to pass fairness tests, and if too many top earners contribute large amounts, the plan can fail. To avoid penalties and the hassle of refunds, many employers set stricter limits themselves.
You can also read:
https://www.bogleheads.org/forum/viewtopic.php?t=408789
does anyone know why it's capped at 11,500?
@qc+1jjzjvdmc... the discussion is about the backdoor Roth using aftertax 401k funds and not the normal means to when contributing to a roth. your post refers to a direct roth contribution... if income limit is high, you can contribute to a traditional ira first and then convert to a roth ira. recommend if possible, take advantage of these routes.
Fidelty--"The amount you can contribute to a Roth IRA—if you can contribute at all—depends on your modified adjusted gross income (MAGI).
In 2024, your MAGI has to be under $146,000 for single filers or under $230,000 for joint filers to make the full Roth IRA contribution of $7,000 (or $8,000 if you're 50 or older).
In 2025, your MAGI has to be under $150,000 for single filers or under $236,000 for joint filers to make the full Roth IRA contribution of $7,000 (or $8,000 if you're 50 or older)."
JFC!!
There's no income limits on Roth conversions. This is $11,500 contributed to after tax SPF then converted to Roth since SPF plan allows for the in-plan Roth conversion. This is on top of maxing out the pre-tax 401k SPF contributions.
yeah, check the income limits. spf won't keep you from getting burned.
What’s SPF mean?
Yes, you can call Fidelity and they will automate the conversion process for you so every month the after-tax money is converted to Roth automatically and then also invested automatically.
Yes. $11,500/year. You can automate investments into any mutual fund as well with it, just like normal SPF.
Yes