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Hi Fishes, I recently joined Pwc AC and was informed to update my checkpoint portfolio where we update all our investments. If we have some investments and if we do not declare them, will it be a problem or can I update it as Nothing to report. Recently I joined here so I'm having some confusion regarding this.
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100%. On 150k salary here and doing 10% into mega backdoor on top of backdoor/401k
~$55k is the annual contribution limit to all plans including company match. I don’t think kpmg1 was implying the remaining 15k was company match
I personally am almost maxing megabackdoor Roth and pretax 401k, but beyond that putting money in my own brokerage account. Feel like it’s worth having more liquid assets beyond that, since Ill likely need money for a house, car, etc. before I’m 65 lol
Jesus, you’re saving more than 55k?
Rising Star
I prefer the more liquid route, but I think depends how much money you have available already for pre-retirement age spending.
Chief
Can you not do both? Why do you need more liquid assets right now?
The reason I'm putting more in via the mega backdoor is because not all plans offer this option. I can put in up to 10%. I've had the option of 4% and 0% at other companies.
It's also helped me about lifestyle creep while getting ahead with retirement. I don't need to save $40k+ a year for retirement. So that means that either I can retire a few years early, or I can easily deal with periods of unemployment or underemployment.
You can always consider doing a mix of mega backdoor and personal account. Or starting with personal account and adding to the mega backdoor funds when you get a salary bump.
can someone explain mega backdoor lol
Chief
Basically: You contribute to after-tax through your 401k plan. (This is separate from the traditional or Roth 401k options and is not subject to the 19.5k limit). Then you convert the after-tax funds to Roth funds that grow interest free.
Is 55k limit includes 401k
Chief
What is wealth builder?