Robert Brokamp

speaker

4,317 appearances 39 recordings 3 series first heard Oct 2025 last heard 12 Sep

Robert Brokamp’s voice in public audio — every appearance, attributed to the second.

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recordings per month · last 12 months

Recordings per month over the last 12 months — 39 in all, peaking in Aug 2026 with 5.

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Motley Fool Hidden Gems Investing · Three Lesser-Known But Powerful 401(k) Features · 12 Sep 2026 podcast

If you're able to move the money, transfer your after-tax contributions to a Roth IRA and the taxable growth to a traditional IRA. voice-verified

And there's one more way that you can turn after-tax contributions into Roth assets, known as an in-plan Roth conversion or also known as an in-plan Roth transfer. voice-verified

This allows you to turn non-Roth assets into Roth assets within your 401k while you're still working for the same employer. voice-verified

Again, this is only possible if your employer makes in-plan Roth conversions available in your plan. voice-verified

Now, when you convert traditional pre-tax assets into Roth assets, the amount you convert does get added to your taxable income in the year you did the conversion, resulting in a higher tax bill. voice-verified

But with after-tax contributions, you already paid the taxes. voice-verified

So converting the after-tax basis is generally tax-free. voice-verified

However, converting any earnings on that money is taxable. voice-verified

Once you've converted that after-tax money, those assets will grow tax-free, and this conversion of after-tax contributions into Roth assets has come to be known as the mega backdoor Roth. voice-verified

Now I do have to point out that these in-plan Roth conversions have many moving pieces, and if done incorrectly can result in a higher tax bill. voice-verified

So for example, you'll owe taxes if you convert any of the gains earned on your after-tax contributions, so it's best to convert them as soon as possible. voice-verified

Some plans offer automatic daily or per-payroll conversion of after-tax contributions, which voice-verified

generally reduces the earnings to near zero. voice-verified

In the Motley Fool 401k, for example, you can just click on a button that automates the conversion of every after tax contribution. voice-verified

I hope you can see how this can get pretty complicated. voice-verified

So please, please, please do additional research and perhaps speak with a financial professional before pursuing the mega backdoor Roth strategy. voice-verified

So again, unfortunately, most employer plans don't allow for after tax contributions and in plan Roth conversions. voice-verified

So see if they're available in your plan and have not asked to have them added. voice-verified

Now you may be told why your plan doesn't allow for after tax contributions. voice-verified

And it's actually a valid reason. voice-verified

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