My husband had a few years when he could do the Mega Backdoor Roth. His 401K plan had an automatic conversion feature of after-tax contributions to Roth. That allowed us to build up a little pot of Roth savings. It's still sitting in the 401K, and he hasn't tried to move the Roth money into a Roth IRA.
It is an interesting proposal. However, if I were a member of Congress, I wouldn't feel a compelling need to do this. By law, the money is going to come out anyway, and often at higher tax rates.
Michael, I live in South Carolina and have two daughters who had money left over in their 529s. I did a 529-to-Roth IRA rollover for each daughter in 2024 and 2025 (a total of 4 rollovers). To the best of my knowledge, South Carolina has not asked to receive back the tax incentive.
Thanks for the excellent column! I noticed last year (TY 2024) that our CPA had not subtracted U.S. treasury interest on our state return. We were able to fix this before submitting the 2024 tax return. But we were likely overtaxed by our state in earlier years. I'm surprised the very long "Tax Organizer" we receive in January from the CPA doesn't catch this issue.
James, my spouse is the higher earner and is waiting until 70 to maximize my survivor benefit. I am six years younger, and he wants me to claim my spousal benefit when he claims his benefit. But if I claim my spousal benefit at 64 (instead of waiting until my FRA) will my survivor benefit be reduced?
Hi Rachna, I'm late to the discussion and you may have already made your decision. However, I looked up California (p.80) and Nevada (p.128) in the White Coat Investor's Guide to Asset Protection. The book is a few years old, so the laws may have changed. With that caveat, California's IRA protection is "To the extent necessary for support, no protection for Roth IRA". Nevada's IRA protection is "$500,000".
Comments
Thank you for your writing, Jonathan. I'm hoping that there are unimaginable joys for you now. And that you'll be reunited with all those you love.
Post: Mourning the World
Link to comment from June 25, 2026
My husband had a few years when he could do the Mega Backdoor Roth. His 401K plan had an automatic conversion feature of after-tax contributions to Roth. That allowed us to build up a little pot of Roth savings. It's still sitting in the 401K, and he hasn't tried to move the Roth money into a Roth IRA.
Post: Mega Backdoor Roth
Link to comment from June 25, 2026
It is an interesting proposal. However, if I were a member of Congress, I wouldn't feel a compelling need to do this. By law, the money is going to come out anyway, and often at higher tax rates.
Post: Should Retirees Get a Temporary Flat Tax Window on IRA and 401(k) Withdrawals?
Link to comment from May 27, 2026
Michael, I live in South Carolina and have two daughters who had money left over in their 529s. I did a 529-to-Roth IRA rollover for each daughter in 2024 and 2025 (a total of 4 rollovers). To the best of my knowledge, South Carolina has not asked to receive back the tax incentive.
Post: Saving for Grandchildren
Link to comment from May 7, 2026
Thanks for the excellent column! I noticed last year (TY 2024) that our CPA had not subtracted U.S. treasury interest on our state return. We were able to fix this before submitting the 2024 tax return. But we were likely overtaxed by our state in earlier years. I'm surprised the very long "Tax Organizer" we receive in January from the CPA doesn't catch this issue.
Post: Treasury Tax Reporting
Link to comment from April 1, 2026
James, my spouse is the higher earner and is waiting until 70 to maximize my survivor benefit. I am six years younger, and he wants me to claim my spousal benefit when he claims his benefit. But if I claim my spousal benefit at 64 (instead of waiting until my FRA) will my survivor benefit be reduced?
Post: Social Security Spousal Benefits
Link to comment from April 1, 2026
David, Thanks for sharing your experience. Very interesting post.
Post: Keep it Simpler
Link to comment from February 22, 2026
Thanks for the last point--a good reminder!
Post: Financial Happiness
Link to comment from January 26, 2026
Gosh, this seems a little unfair. FIrst, the IRMAA surcharges and then a reduction in a person's net Social Security benefit each year.
Post: Social Security is not going bankrupt, but that is not the full story
Link to comment from January 26, 2026
Hi Rachna, I'm late to the discussion and you may have already made your decision. However, I looked up California (p.80) and Nevada (p.128) in the White Coat Investor's Guide to Asset Protection. The book is a few years old, so the laws may have changed. With that caveat, California's IRA protection is "To the extent necessary for support, no protection for Roth IRA". Nevada's IRA protection is "$500,000".
Post: Schwab or Vanguard?
Link to comment from January 25, 2026