Author Topic: Does the Mega Backdoor Roth only apply to 401ks?  (Read 1163 times)

Secretly Saving

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Does the Mega Backdoor Roth only apply to 401ks?
« on: March 27, 2017, 10:29:54 AM »
Question:

Is a 401k the only type of defined contribution plan that can take advantage of a Mega Backdoor Roth (MBR), or can someone who has access to a 403b or 457 also apply the MBR strategy? 

Assuming that the plan allows for after tax contributions and for in-service distributions (non-hardship withdrawals), of course!

cantgrowone

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Re: Does the Mega Backdoor Roth only apply to 401ks?
« Reply #1 on: March 27, 2017, 08:40:43 PM »
I'd like to know the answer too. Backdoor Roths have always confused me.

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seattlecyclone

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Re: Does the Mega Backdoor Roth only apply to 401ks?
« Reply #2 on: March 27, 2017, 09:12:48 PM »
Good question! I've only heard of this done with 401(k)s. I know of no reason why it couldn't be done with a 403(b), provided that the plan allows for after-tax traditional contributions past the $18k pre-tax limit, after-tax contributions are tracked in a separate sub-account, and in-service withdrawals of this amount are allowed. Doesn't mean it's possible, but please look into it and report back!

Secretly Saving

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Re: Does the Mega Backdoor Roth only apply to 401ks?
« Reply #3 on: March 27, 2017, 11:14:03 PM »
Good question! I've only heard of this done with 401(k)s. I know of no reason why it couldn't be done with a 403(b)

This is exactly my thinking, but I have yet to find a definitive answer...