{ "media_type": "text", "post_content": "I’ve seen a couple posts lately with comments saying that people should not use a Roth 401k. Does the logic below capture the spirit of that concept?\n1. Use trad. 401k to reduce taxable income now. Convert to trad. IRA once retired, then convert gradually to Roth IRA (ladder, SEPP, etc.) at lowest marginal tax rate\n2. Use Roth IRA (and/or backdoor Roth) to take advantage of tax free growth and ability to withdraw principal early without penalty", "post_id": "5ebc72ef196efb00241a88cb", "reply_count": 12, "vote_count": 2, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

I’ve seen a couple posts lately with comments saying that people should not use a Roth 401k. Does the logic below capture the spirit of that concept? 1. Use trad. 401k to reduce taxable income now. Convert to trad. IRA once retired, then convert gradually to Roth IRA (ladder, SEPP, etc.) at lowest marginal tax rate 2. Use Roth IRA (and/or backdoor Roth) to take advantage of tax free growth and ability to withdraw principal early without penalty

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

The basic premise is correct. Convert to a Roth ladder and SEPP 72(t) will be two very different things though.

like

How is the conversation ladder beneficial? Only seems potentially beneficial if trying to access the funds earlier or if you are in a lower tax bracket specifically during the conversion year

This ^ makes sense

The real question is whether you think you’ll be in a higher or lower tax bracket when you’re ready to withdraw (which is a based of how much you want to withdraw and what you think the Gov will do). If you think you’ll be in a higher bracket when you retire, than do Roth. If you think you’ll be in a lower bracket, then do traditional. The ladder is just a convenient way to access traditional 401k funds early. Roth you can always access your principal whenever. There’s a bunch of mumbo jumbo about laddering for tax efficiencies. It’s really just a subset of the first point I make. The only exception is if you max out your 401k contributions. In which case I generally advocate for Roth’s.

I see what you mean, good point!

Related Posts

Start tomorrow but I don’t get a match for 401k until 2nd year. Living at home and wanted to pay off my loans. Is it ok if I just do loans, max out IRA, and have an emergency savings? Projected CONTD

Have anyone done contracting negotiations before? I've interviewed for co A & B and co A extended an offer today. The offer does not meet my current salary. Co B's interview structure is 3 rounds and I've finished my 2nd round today. The recruiter mentioned that since I am a contractor my current salary is incomparable as they will provide benefits, etc. Is this true? I have 2 yrs of contracting HR exp from fortunate 500 co’s & OMW to get my SHRM-CP. Appreciate your advice in advance.

like

What’s your Firm’s Retirement contribution/plan at various staff levels? Guidehouse is now only a 3% company match into your 401k. Guidehouse used to be 4.5% to 9.5% of your base salary.

like

Why are so many moving from CSR to CSP. I get that the fee is significantly higher for the former, but how are benefits better for the latter?

like

I've never done any 401k business, but I understand I can become broker of record on existing plans. First of all, what does that mean? Do I just appear as a name on their statements?

like

At what point pre-IPO is too late to join a company to reap the benefits of the IPO?

like

Does anybody know how HSA benefits work with unmarried domestic partners? We are on same health plan but it’s unclear whether hsa is tax advantaged or not for my partner. Online info is very unclear as well.

like

It seems like everyone is aiming to be financially independent and looking to retire early these days. Is that going to mess up the economy in a few years as most people retire earlier than ever? I want everyone else to live that YOLO life while I save up to FIRE in a few years, but it feels like everyone is saving up.

likefunny

My benefits page shows that the before tax contribution and Roth 401k contribution can both be matched by my company (up to 6%) which do I choose ? I thought Roth wasn't matched?

like

Was let go as a staff 2 at 77k in September and currently have 3 offers in deciding between them. Would really appreciate any feedback. 1. 3rd year associate at PWC -HIA at 85k. 2. Transformation analyst at a big 3 automaker 83.5k 10% bonus. 3. Product development role at a healthcare startup. 100k 7.5k sign on and 7.5k bonus in 3 months. Potential 20% bonus at year end.

like

Ladies, I recently left consulting for a VP level job in industry. I report to another VP so they choose to “withhold that title for my functional title.” Have all the benefits and sig authority....

like

What perks/benefits do you think are best at your firm? Any big differences between B4?

like

How soon can I retire? I hate hate hate audit and dealing with clients who get upset over everything I do. I got a decent inheritance several years ago ($800k mostly in large tech + $300k FBO trust when I reach 30 yrs old). I don’t care about being rich or climbing the ladder. I just want to live in a cheap country by the ocean. I have no expensive hobbies. My dividends/interest is $5-6k every year. Thanks!

like

put 6K into my roth IRA, just want to dump it into a few ETFs and forget about it until i’m old and wrinkly - what should i go with? VOO? QQQ? thank you in advance for helping me retire!!

like

Two Sigma does Two Sigma offer tuition reimbursement? How's PTO there?

like

People who have moved from one MBB to another MBB, how was it and any benefits/regrets from moving?

like

What are all of the benefits of going to industry? I don’t particularly love consulting, but feel like I would be too bored working in industry.

likehelpful

Actually spent all of my per diem today and am feeling shitty about it. Normally, I have enough left to essentially eat free over the weekend!

like

My company reimburses CFA exam fees if I clear level the exam and if I stay in the firm for 2 yrs from reimbursement date. I don’t wish to be in the same firm . Can i still apply for CFA scholarship?

like

If company only matches 6% should I only put 6% of income into 401k? Does it make sense to put more to lower tax bracket?

like

Additional Posts

For anyone that went from a BDR role to a BDR manager role, how did you make the transition? I have 4 years of BDR experience unofficial team lead experience but no other leadership experience yet. I do not want to become an account executive so this seems like it might be the best path for me at this point to get to the next step in my career. Advice?

like
likeupliftingsmart

Opinions on Harvard Extension School? How do you think it would be seen by hiring managers?

Booking a local weekend trip with the wife and I have an option to spend 100k Bonvoy points for 2 nights or use 50k + 1 free night award up 50k. Since my free night expires mid-next year, I should go ahead and use that first before using my points right? Hotel is 50k a night/category 6.

like

Have a ton of Aeroplan points saved up. Debating whether to save them for travel or use them for an Apple Watch. Any tips? Is it generally better value to use them for travelling?

like

Anyone familiar with VCCP? What’s the culture like, how is their business, what are they known for? Looking at a role stateside.

like

Hi Fishes, I have Techno Managerial round with Pwc tomorrow for salesforce developer position. What king of questions can I expect. My YOE is 2 years.

like

Others have experience spending weekends doing alt travel (rather than returning to your home city)? How have you managed, any repercussions in the way you were perceived at your firm?

like
like

COVID life has got me in some major frump. What cute clothes are you guys wearing? Looking to update a bit for spring. Still anticipating to be mostly at home though through summer if not longer.

like

Has anyone interviewed with Cloudflare before? Thoughts / experiences?

like

What types of questions should I be expecting in an Associate Planner interview with a very senior person? What questions would you ask a potential Associate Planner?

like

Am currently on H1b status and have been since oct 2019 (so no h1b visa stamp in passport). I am planning to travel to Hong Kong to get my visa stamping done. Does Trump’s proclamation prevent me from entering the States before 2021?

like

Any Accenture new hires? How long does it normally take to hear back after your confirming interview?

like

I’m teaching a quick copywriting 101 to middle school kids via Zoom. I’ve got most of my lesson plan firmed up, but any advice/hacks/whatever you learned in the beginning of your career that you couldn’t do without now?

like

First time home buyer. What are the tricks yo get finacial benefits from builder, broker, lender, state and federal. Would be doing 5% downpayment. Trying to avoid pmi or get lower one, for 30 yr

like

how many administrative/non billable hours do you have per week? only working 6 billable hours per day right now (tech consulting)

like

What are your thoughts on the value of a Harvard Extension School degree vs. a standard online MBA from a reputable public university? I feel like the Harvard name carries a lot of value....

funnylike

Was told that Amazon legal comp is “lock step” based on YOE, suggesting that there is no room for negotiation. Is this true? #Legal #amazon #pay #tc #totalcomp #comp Amazon

like

Hi! Does anyone know what kind of knowledge is needed to crack the Data Scientist interview at Google? I'm currently working in Marketing Analytics (primarily using SQL and a bit of pyspark). Apart from mastering SQL, I wanted to know from people working at Google what does it take to get there as a Data Scientist? (I'm very interested in Strategy Ops) I plan to another 6-8 months in preparation and upskilling myself before I even apply. Any help and guidance is appreciated! Thanks :)

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
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

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal