Can employer matching contributions be allocated to a designated Roth account?

Yes, your employer can make matching contributions on your designated Roth contributions. Your employer must allocate any contributions to match designated Roth contributions into a pre-tax account, just like matching contributions on traditional, pre-tax elective contributions.

What is the difference between a Roth IRA and a designated Roth account?

Compared to a Roth IRA, designated Roth accounts offer larger annual contribution limits than Roth IRAs and are not subject to the modified gross income limitations that restrict some individuals from contributing to Roth IRAs and allow participants to keep their Roth and pretax savings within a single plan.

What is the difference between a Roth IRA and a Roth 457?

As mentioned, contributions to 457 plans are made with pre-tax dollars. But you will pay taxes on any money you withdraw during retirement. With a Roth IRA, you do not get an upfront tax break, but your contributions and earnings grow tax-free and are withdrawn tax-free in retirement.

Can you do multiple Roth conversions a year?

Yes. You can do Roth conversions as many times as you want, with no limit. In fact, there are many cases in which you may want to create a multi-year Roth conversion plan. This is especially true if you’re interested in tax-efficiency in your Roth conversions.

Can I convert my 457 to a Roth IRA?

You can convert your eligible 457(b) plan distributions to a Roth IRA with either a transfer or a rollover. For several reasons, the transfer is the simpler method. With a transfer, you tell your financial institution where to move the money, and it takes care of the rest — and there’s no withholding.

Can I contribute to both a Roth IRA and a Roth 457?

Contribution Limits – Roth IRA contributions are limited to $5,500 in 2014 (or $6,500 if you are age 50 or older) versus $17,500 for the Roth 457 (or $23,000 if you are age 50 or older). So, you can contribute more on an after-tax basis to your Roth 457 than to a Roth IRA.

Can I contribute to both a Roth 401k and a Roth IRA?

Yes, it is possible to have both a Roth IRA and a Roth 401(k) at the same time. If you don’t have enough money to max out contributions to both accounts, experts recommend maxing out the Roth 401(k) first to receive the benefit of a full employer match.