401k question - I know I can only pay $20,500 each year tax free but can I pay more in and get taxed or something? When I set it up it recommends 12% of salary which is going to hit the limit pretty quickly so what’s the deal here? (Not from US originally and this 401k stuff is confusing af)

likefunny
Posting as :
works at
You are currently posting as works at

After you maxed out on all tax advantaged options (401K/Roth IRA) the. Invest in a brokerage account such as Vanguard with low cost index funds.

likehelpful

F

funny

F in the chat

Once you max contributions in 401k, consider other tax advantaged accounts (e.g. IRA) or you can put into a Brokerage account.

Caps are for special tax treatments.

like

It depends on your plan, but you can probably contribute to an “After Tax” account if you want. However this isn’t terribly advantageous. You contribute after tax money and then at retirement you’ll be taxed again on withdrawals. The benefit is no taxes on growth over the years.

Some plans now also offer the ability to convert these After Tax contributions to Roth status, which means you won’t pay tax on withdrawal in retirement. That’s a huge benefit of course. Your plan has to allow it though.

like

CAN you? Yes. SHOULD you? No.

The only benefit of contributing after tax would be the easy automated withdrawal from your paycheck - the downside would be that your post-tax money is locked up in that 401k and subject to the withdrawal rules like the rest of the money.

Taxable brokerage is a better option because you can withdraw it at any time without the penalty that applies if you dip into your 401k before retirement age. You'd just pay the normal taxes.

like

Max out tax-advantaged 401k >
Backdoor Roth IRA >
Invest in taxable account, or try for Mega Backdoor Roth if plan allows

like

You can change the percentage ater and most of companies stop contributing after you hit the limit otherwise 401k people will send you the pay check of additional amount in case if your employer over contributed for that year

For 2023, $22,500 for individual contribution and $66,000 for all contributions for below age 50

If you max out your 401k you may want to look into other investment vehicles. If you're somewhat HNW then utilize a financial advisor.

Does Deloitte offer a Roth 401k? If so that’s magical combination of tax free growth and you can take out your original investment so it’s not all locked up

Related Posts

These are the benefits for a client we’re working with that needs Sales Engineers and Applications Engineers ASAP! These are regionally specific jobs that can sit in SC, CA, NC, GA, anywhere from Houston to Chicago - pretty much just hit me up if you’ve got an engineering degree and some moxy!

Post Photo
like

Who’s ready for more rediculous tax law changes which will help middle America subsidize healthcare costs that we can blame on the rich who donate millions to politicians who pass all the legislation?

like

Need advice. Have some credit card debt that I’ve been working to pay off. Have made progress but want to lower it quickly. We have dual income, with a house (~$300k in equity), 1 kid and 1 on the way. I’ve looked into debt consolidation via HELOC but also have ~$80k in vested equity in my company that I haven’t touched. Get equity refreshes every year. Would it be smarter to cash out $15k-$20k of that to pay debt vs. a HELOC at ~5% given that will still require mthly payments

like

Does anyone have any experience with B2B buy now pay later? While I understand number of SMEs and volume of online transactions are important drivers, keen to hear different perspectives incase I’ve missed anything vital.

like

PPEDs: Just found out that a Partner, who was promoted in 2017, was fired. IDK the circumstances. What can they expect to walk away with besides 401k & normal pension plan?

like

starting my first FT job and planning on investing 1k each month. any advice on how and where to invest this money?

I'm being interviewed for Senior Analyst in hsbc. Can anyone help me with the tax saving options available with HSBC? Like self education, communication, meal vouchers etc.

like

Is there anyone who works currently or has worked for Travelers Insurance in Hartford CT? Looking for an idea on compensation, benefits and your opinion on the company. I’m interviewing for the Operations Manager role

like

Best recent healthcare books related to improving our broken system? Atul Gawande’s books are a bit dated now I think.

Just finished An American Sickness again. Thank you!

like

Has anyone here purchased a co-op? I’d like to hear about your experience

like

If the healthcare industry is so messed up, why hasn’t there been any successful healthcare startups? Seems like there is so much opportunity for improvement here, but there must be a reason no one is capitalizing on it. What are the barriers?

like

My portfolio is getting HAMMERED this morning. That is all. Clearly I'm not selling but seeing straight reds is painful.

like

What will be in in hand salary at 14.4 CTC? I have education loan as tax saving

like

Best cards in Canada for points?

like
like

What are some personal finance actions that, if needed, must be done by end of year? Let's try to make a checklist!

Tax loss harvesting

Retirement accounts for 2022: can contribute or withdraw over-contributions until April 18, 2023 IIRC

HSA: same as retirement accounts

...?

like

Has anyone tried to sell miles or points through one a site. I have a family member looking to do it and I had never looked into. Any experiences? Pros cons

like
like

More Posts

Has anyone heard anything about Up or Out? Got an invite a couple of times, but trying to figure out if this is a scam or something.

like

Planning a one-week summer vacation to Yellowstone Park area. Family unit of 6, so need to rent a single, large SUV. Just looked at prices and the cheapest car available for 6 people with unlimited mileage is $3,500+. Makes the vacation almost not worth it. Anyone have any recommendations on how to get a better deal? Any discount codes? Thank you in advance!!

like

Hi ,

Can anyone suggest about fitment round .

Tag lines for Deet bug sprays

Hi Fishes, looking for Data Analytics, Product Analytics and BI opportunities. I have 7.4 years of experience and currently serving notice period. Last working day is 10th April.

if you across any positions or can refer, please comment below and I will DM you. Cheers!

Does anyone have any experience with freelancing? Best site for getting genuine analytics opportunities?

like

I attended a Kindergarten Readiness meeting and a preschool director who has been open for most of the pandemic said that her staff wears smocks or aprons to protect themselves. We are going back full time in less than a month. I am not sure if I should buy an apron. Does anyone know any research about this?

like

I am a person, not a machine. That is all.

likeupliftingsmart

Currently a supervisor of a staff run group home for at risk youth. Anyone hiring for a supervisor with 1- years experience in mental health?

like

My favorite week in Miami is coming up! Hope you folks in brickell don’t mind the 45 minute wait for Ubers lol

like

Any Spanish speakers here? (First language)

like

What will be expected salary in lesban Portugal for devops ,India having 28lpa

like

Any Accenture UK consultants here?When does the performance cycle start every year? Ill join in Jan and they promised me a promotion after first year so wondering if I can still hit the annual targets

like

Please suggest some good , safe accommodation option for rent near London under £1000 for a single male new to UK. Looking to move in June.

like

Currently have chase sapphire but thinking of switching to Reserve. Should I?
Wife will also be authorized user, we do travel and will use this card for all our purchases

like

New Delta Marriott deal - 2 miles per $1 spent. Anyone switching to earn miles?

like

I am 3 weeks away from my last working day and not getting any interview calls even after updating at various job portals. What could be the reason? I am 7+ years of work experience in software testing. Please help.

like

Anyone from the McKinsey Los Angeles office willing to refer me and help with a couple of case prep and possibly fixing my resume?

1yr Accenture
8 yrs Oil and Gas Engineering and project controls
MBA from Texas A&M

I will buy you a tomahawk steak covered in gold or a dope surfboard if I get hired!

Does anyone have an idea how much partners at McK, BCG and Bain make on average? Considering whether I should hang on to this graft for few more years or throw in the towel now? Thanks in advance. Rough ranges are fine too

like

Does anyone use Litera Transact? Do you find it useful? Our firm recently rolled out the tool but the partners would prefer to run the transactions the old way. Not sure if I should spend the time to learn the tool/promote it to partners?

likesmart

Additional Posts in Consulting

Is there any advice for networking into projects when you don’t know many people at the firm yet? I always to help on BD work when I’m on the bench, but it never turns into any billable work. Every time I have talked to a partner/senior manager I was told I don’t have the skill set they’re looking for, but I don’t know how to build up from there. Feeing very lost but I want to improve my approach.

likehelpful

Anyone in Vienna?

like

I just caught my senior managers behaving unethically and am unsure whether to say something for fear of retaliation.

like

I got offers from top consulting firms in Berlin and Amsterdam. Any ideas what factors to consider in my decision?

likehelpful

Most stressful commute story go

like

Rank these MBB and T2 pre engagement manager titles:
- Consultant
- Associate
- Senior Consultant
- Senior Associate

like

sad story of my life: getting drunk at a giordano’s in chiotown alone bc my flight got delayed :) RIP

like

I've noticed United planes are small, old, and very cramped for domestic flights. Are Delta or AA any better? Which airline should I prioritize for service and status?

like

I have an informational interview with a Managing Director on Friday about a manager role. I currently serve in a client services role and do not have traditional consulting experience (billable hours, etc.). Additionally, while I’ve worked with McKinsey, Accenture, McKesson, and other teams on major projects, I don’t have experience putting together the strategy, more of a support function. Feeling a tad intimidated! Any tips would be so very appreciated!

like

I think I’m going to be fired tomorrow morning and I am not even sad about it.

likehelpful

When you hear that staff 1s we're just laid off... 😳

like

Any book recommendations?

like

I tried asking this in my own bowl with no responses, so seeing if other consultants have run into this situation. I’m on parental leave, I got an offer for another firm, great opportunity and pay. How does one go about a resignation mid-leave when you would start the new job before the leave ends? Two weeks notice or just say I am not returning effective the day of the new job? Any things to consider besides potentially repaying the employer healthcare premium?

like

Any Canadians moved to US? Canada is a pretty great country with free health care, wondering if I am missing out...would love to hear your experience.

like

M2 NYC metro area working in healthcare consulting base around $131K low for an M2 in a high COL or market? No MBA, but want to pursue in the next 2 years to pivot to working in health strategy.

like

Book recommendations on leadership, career development, etc?

like

Top tips for moderating a panel? Also ideas for including audience interaction?

likehelpful

Looking for non- fiction book recommendations. I just read Shoe Dog and loved it.

like

Damn you stress canker sore. Damn. You. Pain. The pain.

like

Does B4 let people go the same day as their resignation only if they’re going to a direct competitor? How about MBB or a tier 2 consulting firm?

Have people been let go immediately in case they go to FAANG or other industry firms?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal