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  #11  
Old 11-20-2019, 01:17 PM
nonlnear nonlnear is offline
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Originally Posted by sixt8 berd View Post
Did you have to ask about this? I'm wondering if this is allowed in my plan but I have never heard of it.
I didn't find out by asking about them - the in-plan conversions were announced by my employer a couple weeks prior to open enrollment. We have to specifically request them, either one-off (limited to once a year), or we can check a box to elect to automatically sweep all after-tax contributions into the Roth 401(k) when they come in.

eta: If you don't have them available, start asking your HR folks about enabling in-plan conversions. It's something that costs a company nothing to implement but gives employees a lot more options to manage their retirement, so it's an easy win for HR to look good. If they hear that people are aware of them and want them, it shouldn't be a hard sell.

For those not familiar with in-plan Roth conversions, it is also known as the mega-backdoor Roth.

Last edited by nonlnear; 11-20-2019 at 04:18 PM..
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  #12  
Old 11-21-2019, 01:39 AM
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The Drunken Actuary The Drunken Actuary is offline
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One lesser-known fact is that you can also have a fixed dollar amount contribution each month. Sometimes that's helpful in these situations because it takes away the timing uncertainty with future compensation. For example, if you get a bonus during the year and your personal % hits the bonus but the employer doesn't match it -- you can end up in a situation where you hit the IRS max before EOY. That's not a great thing to do when your employer match goes to zero when your contribution stops (which it has to once you hit the IRS max).

You may have to talk to someone in HR/payroll to set up the fixed dollar amount though.
Is that really a lesser known fact?
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  #13  
Old 11-21-2019, 08:30 AM
OnLevel OnLevel is offline
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Originally Posted by nonlnear View Post
My employer allows after-tax contributions up to $56k across all plan types. It requires opting in to spillover contributions after the $19k cap. The best part is we can do Roth in-plan conversions, so it's effectively a $56k annual Roth contribution cap.
Sounds like what we have. We can roll the after-tax stuff to an external roth ira any time. It's really awesome :
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  #14  
Old 11-21-2019, 09:39 AM
Rastiln Rastiln is offline
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Is that really a lesser known fact?
I didn't know, and I am more financially savvy than most of my coworkers. I'd guess that 0 people in my department are aware of this.
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  #15  
Old 11-21-2019, 09:46 AM
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I didn't know, and I am more financially savvy than most of my coworkers. I'd guess that 0 people in my department are aware of this.
well, 1 knows now
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  #16  
Old 11-21-2019, 10:39 AM
Rastiln Rastiln is offline
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Originally Posted by yoyo View Post
well, 1 knows now
HR just told me that we don't do fixed $ amounts anyway, so not very useful.

(Still appreciated the idea though, E)
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