Yes, you are correct, I was thinking of it wrong. I was thinking more along the lines of self employed folk and need to stop that! Though there are some 401ks that can accept higher amounts (above the 17.5K) that then roll into Roths that work too, but certainly not all. I think that in part occurred because I was trying to figure out who would want to deploy this strategy in real life.I thought the backdoor was to get around the income limits and that you were still limited to the IRS maximum a year. No?
I'll have to issue a 4 day ban for not linking to my article on HSAs http://saverocity.com/finance/need-hsa-account/Just ran across this article. It seems that if you're eligible for an HSA, you can use it as a Roth with benefits. You can fund a family HSA with up to $6500 and invest it however you wish. This effectively doubles your yearly Roth limits, while still being able to withdraw the money for medical expenses at any time (even years after the medical expense).
http://jlcollinsnh.com/2014/08/18/stocks-part-xxv-hsas-more-than-just-a-way-to-pay-your-medical-bills/
LOLI'll have to issue a 4 day ban for not linking to my article on HSAs http://saverocity.com/finance/need-hsa-account/
You can only do that if self employed. Else it will be your company plan, and already established.LOL
I'll admit that I did miss that and will accept my ban. However, you didn't *really* mention that it could be used as a Roth replacement. I've no idea how to setup an HSA with Vanguard or whoever. Flesh that out for us in part 2!!!
Ahhh okay, that makes sense. Guess I'll have to see if I can set one up...You can only do that if self employed. Else it will be your company plan, and already established.
IIRC you can once a year roll your balance from one HSA provider to another. I seem to recall FWF has active threads on which providers have good fee/investment opportunities. Perhaps that is covered in the linked articles which I didn't read (yet?). I am my first year in the HSA game and my employer plan pays sub 1% rates. I figured I'd let it build up a year or so before I looked into other providers and rollovers.You can only do that if self employed. Else it will be your company plan, and already established.
You can roll them over. I'll have to dig around myself to check up on the rules for doing so while in the plan rather than at job change time.IIRC you can once a year roll your balance from one HSA provider to another. I seem to recall FWF has active threads on which providers have good fee/investment opportunities. Perhaps that is covered in the linked articles which I didn't read (yet?). I am my first year in the HSA game and my employer plan pays sub 1% rates. I figured I'd let it build up a year or so before I looked into other providers and rollovers.
Note that not all 401k plans will accept the rollover- but it might.I need your input about IRA and I'm not sure if this is the right section to ask this. I will be unemployed in a month. Would it be advisable to move my 401K money to an IRA account? Or just wait til I find a new job and rollover the funds to the new 401K admin?
Can you clarify? Are you suggesting that there is a window which if closes means you can no longer roll out of an old 401(k)?Isn't there a qualifying event clock to worry about?
I could be wrong, my husband was reemployed before his other job ended (I sort of wanted a slight pause, oh well) so I'm not sure if a new job is also an event.