In our last blog post, we showed where does the $30,000 per year Roth IRA contribution amount come from. Now we will show you how to find out if you can be one of the lucky people to actually implement this strategy.
First, contact your 401(k) sponsor, such as Fidelity, Morgan Stanley, etc. and ask the following two questions:
1. Does my 401(k) plan allow after-tax contributions?
Unfortunately, not every 401(k) plan allows it. Hope you are the lucky one!
2. Does my 401(k) allow "in-service withdrawal"?
Again, not every 401(k) plan allows in-service withdrawals, hope your plan allows it!
If you have Yes to both questions, congratulations, you just received a big gift from IRS!
Your next step is to carefully budget your daily expenses, make sure your life won't suffer much as you stash away $50,000 each year towards your retirement use!
First, contact your 401(k) sponsor, such as Fidelity, Morgan Stanley, etc. and ask the following two questions:
1. Does my 401(k) plan allow after-tax contributions?
Unfortunately, not every 401(k) plan allows it. Hope you are the lucky one!
2. Does my 401(k) allow "in-service withdrawal"?
Again, not every 401(k) plan allows in-service withdrawals, hope your plan allows it!
If you have Yes to both questions, congratulations, you just received a big gift from IRS!
Your next step is to carefully budget your daily expenses, make sure your life won't suffer much as you stash away $50,000 each year towards your retirement use!
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