I’m going to be joining Accenture next month. I already max out my Roth IRA and I plan to rollover my EY 401k into another Roth IRA. Should I make additional contributions to my 401k before I roll it over? Pay taxes now and not worry about taxes later?
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We have an after tax 401k up to 15k/yr > megabackdoor. At a $110 base I think you could do Roth IRA direct and this megabackdoor. Our 401k plan has good options, so you could roll your EY plan into your ACN plan.
19.5k is trad+Roth max. An after tax 401k is an additional retirement account that has a 15k ACN-imposed limit. That account allows in-service withdrawal as a roll-over to Roth (megabackdoor), which then grows tax free and is withdrawn tax free.
You can check out the wealth creation circle on ACN’s portal.
In your case I’d suggest continuing to max out Roth IRA and weight your Accenture 401K contributions to Roth 401K and then shift towards Traditional 401K as your taxable income increases. This is based on the tone of your question which leads me to believe you don’t care about reducing your tax basis right now.
Also, make sure you take advantage of the ESPP program asap after joining.
Welcome by the way!