@dmertz thank you. To make sure I am understanding correctly (this will help me this year and future tax years, so I appreciate your answers)
I have these accounts:
Roth IRA: $130K
Traditional IRA: $330K
(new) Individual 401K: $0
(new) Individual Roth 401K: $0
Can I do this for 2020 tax year?
step 1: EMPLOYEE contributions: Put $19,500 in my Individual Roth 401k (employee portion). Put $0 in my Individual 401k (employee portion) since I have used the $19,500 limit up for the Roth 401K above
step 2: EMPLOYER contributions: Contribute $18,769 into my Individual 401k as you mentioned, given my income levels (this is assuming my plan does not allow after-tax contributions) Would this be deductibe or a non-deductible employer contribution? I am confused about this.
step 3: Then, immediately roll or transfer the entire $18,769 contribution amount from my Individual 401k into my Individual Roth 401k? (no tax deferral benefit). Can I do this, or would the money have to stay in my Individual 401k? If I am not permitted to do this, then it does not make sense to contribute the $18,769 at all (since deferring taxes wont have any advantages, as you said previously).
Appreciate you clarifying!
