Author Topic: Petition employer to allow mega backdoor Roth  (Read 1377 times)

ThriftyTechie

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Petition employer to allow mega backdoor Roth
« on: October 22, 2016, 07:11:53 AM »
Has anyone got their employer to change 401k rules to allow backdoor Roth? I am in an extremely high tax situation, even qualified dividends are taxed at 35%, so I could really use the extra Roth space. Unfortunately my large employer doesn't even offer after tax contributions. This is a finance company, with lots of highly paid employees, so you'd think they cared. I am jealous of my friends in tech who all seem to have access to the backdoor.

tonysemail

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Re: Petition employer to allow mega backdoor Roth
« Reply #1 on: October 22, 2016, 07:53:22 AM »
i can't take any credit, but other folks at my company were petitioning HR. 
late last year, I forwarded an article to benefits/HR and asked if it was something they were looking into.
their response was, "stay tuned.  we're investigating."
6 months later, they announced that it would be a new benefit starting this year!

Interestingly, they said they rushed the program because they didn't expect the benefit to last much longer.
ie they wanted to get it done asap in case Congress acts.

Ask your benefits department and see if they have done due diligence already.
I bet they have since the 401k administrators have incentive to market this to more companies.

ender

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Re: Petition employer to allow mega backdoor Roth
« Reply #2 on: October 22, 2016, 10:12:34 AM »
Has anyone got their employer to change 401k rules to allow backdoor Roth? I am in an extremely high tax situation, even qualified dividends are taxed at 35%, so I could really use the extra Roth space. Unfortunately my large employer doesn't even offer after tax contributions. This is a finance company, with lots of highly paid employees, so you'd think they cared. I am jealous of my friends in tech who all seem to have access to the backdoor.

When I investigated, I found out my company already has issues with passing 401k discrimination testing and so they are unwilling to add an option that will likely make that problem worse.

:'(

 

Wow, a phone plan for fifteen bucks!