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A *multi national bank* is hiring for the role of customer service representatives
Requisites:
Any graduation.
Must be able to speak English fluently.
Flexible with shifts.
Experience: Even fresher may apply.
Salary best in the class.
If you possess the required skills & experience please forward your resume to:
m2thimmaiah@gmail.com
If interested Pls DM or reply
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Anyone taken a 3week vacation before?
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Subject Expert
Tax free growth and withdrawals is why. Do it yesterday.
Definitely tax-free growth, unless you wouldn't max it out without the tax benefit. But in biglaw, that shouldn't be the case.
There is a lot of confusion on this thread. There are three ways (generally) money can end up in your Roth IRA.
** 1 ** You deposit up to the $7k limit into Roth IRA. Most Biglaw associates won't qualify to put any money into this due to income limits.
** 2 ** Backdoor Roth - you convert a 401k (when you leave your firm) or your traditional IRA into a Roth IRA. It is a taxable event since your 401k/trad IRA was pretax, so you have to pay taxes on the amount your portfolio has gone up beyond your contributions. But then it grows tax free once it's in the Roth IRA.
** 3 *** Megabackdoor Roth (the best option) - you add money into the After-tax 401k if your firm offers it. At anytime, you can roll that into your Roth IRA (depending on your firm/401k provider's restrictions). The limit in 2024 for aftertax 401k (assuming you max out your trad 401k/Roth 401k) is $46k. That's why it's called the Megabackdoor, since otherwise most of us can't put anything into our Roth IRA, but are able to put a HUGE chunk of money into Roth that grows completely tax for for like 20-30 years, and isn't taxed when you withdraw.
The other benefits of Roth IRA include being able to pull out your contributions anytime without any additional taxation (as long as you've had your Roth ira account open for 5 years) and there is no required minimum distribution (RMD) when you retire. I like the first benefit so I can add to my Roth and if I end up needing it, I can pull out my contributions for something like a house down payment. For context, I'm a midlevel and have like 250k in my Roth ira, plus another 250k in my trad 401k/Roth 401k with investments in just ETFs. This is only with megabackdoor, and regular 401k contributions.
Coach
Thanks both!
Enthusiast
Yes. It’s not that hard. Just google backdoor Roth fidelity. First time took me an hour to figure out. After that, it’s at most a 30 minute commitment each year to make that transfer.
Mentor
A2 -impressive! Anyone else’s firms not permit mega backdoor Roth? (Or just mine …)
Can this be done even for big law income earners? Thought we earn too much for that to work?
Subject Expert
We make too much to contribute directly to a Roth IRA, but the backdoor Roth IRA involves contributing to a traditional IRA and then immediately converting that to a Roth IRA so you end up in the same place as you would if you contributed directly to the Roth IRA. No reason not to, unless you have the pro rata rule to deal with. Easy way to get around that by moving any existing traditional IRA money into your current firm traditional 401(k).
My Roth is up to over $150k now as a 6th year associate. I was fortunate that I picked a few good investments, but the $6-7k contribution per year is definitely worth the 30 minutes of time it takes to set up.
Do the mega back door Roth if your firm has it which is something like 46k per year. Totally worth it
Coach
Up to 69k. People mention 46k simply because that's how much you'd have left under that cap if you maxed your voluntary pre-tax contributions.
Coach
It's minimal effort. Took me like an hour total to (1) explain to my broker and his assistant what I meant and then, after they got the right department involved, (2) fill out the forms and authorize the first transfer. Ever since it has taken me <10 minutes per year for the entire process. (OK, 20 minutes if you include the time filling out the right fields for Turbotax.) That includes $7k for me this year and $7k for my wife. I've been contributing to my Roth IRA since I started working as a teenager and it's up to like $170k now. My wife started contributing to hers after she met me and hers is like $80k or something.
And next year I'll probably roll over my $110k in Roth funds from my 401(k) into my Roth IRA. The fact that we're in our 30s with like half a million in Roth funds already is simply freaking amazing, but it's never too late. Start doing this immediately.
Mentor
Because it’s more like $40k+
Mentor
I want to clarify how a backdoor works: so I open a new IRA (current one has all pretax money in it from previous 401ks) and deposit $7k (or whatever the limit is) of post tax money into the IRA. Don’t invest it or make any income on it, just convert it as soon as I can to a Roth IRA. Can I just convert it into my existing Roth IRA account? Will any of that $7k I put in be taxed again assuming I made no income from investment and that money is already taxed by my job? This seems…easy enough?
Mentor
A10 Yeah so it seems like the only way to avoid this would be to move my traditional IRA money to my 401k, giving myself a traditional IRA balance of 0. Although I don’t even know if every employer plan allows that or if it’ll be annoying to do. And idk if I even want to do that tbh. I’ve moved jobs a lot both pre and post law school so I don’t just have everything in one employer sponsored plan. Maybe I’ll focus on a Roth 401k instead since I do like diversifying with pre and post tax.