{ "media_type": "text", "post_content": "Mega backdoor roth question: Can I contribute to the traditional 401k and make after tax contributions at the same time or should I max out the traditional 401k first and then start the after tax contributions? Does the order matter at all?", "post_id": "61f44f6435fa460035e04896", "reply_count": 4, "vote_count": 2, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter", "feed_type": "bowl" }

Mega backdoor roth question: Can I contribute to the traditional 401k and make after tax contributions at the same time or should I max out the traditional 401k first and then start the after tax contributions? Does the order matter at all?

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

anecdotal but we like to front load after tax and DCA traditional 401k. Not all employers offer after tax and everyone offers traditional 401k. Allows us to re-evaluate early in the year. Is a cash crunch for the first 2 months though

like

You can choose whichever you would like. Things to think about are: 1. How much cash flow do you need throughout the year? Mind if it’s lumpy with less at the beginning of the year until you max out Traditional 401k? 2. How much do you want to contribute to after tax over the course of the year? It may be capped at a % per pay check (at least how my after tax 401k plan is set up with Fidelity). For example, I can put up to 10% of each pay check to after tax account (so if I want to maximize amount in this account at the end of the year, then I would want to do it all year) 3. Are you a “time in the market” or “timing the market” type person? If you think the stock market will be lower by the end of the year or continuing to go down some, then it could benefit you to spread it out, rather than front load.

like

Thanks, this helps. I would prefer to spread both contributions (traditional and after tax) across the year, but I was wondering if there are any downsides or limitations on doing that.

like

I think the main downside would be if you don’t max out your after tax limit (to fully max out mega backdoor) due to a cap in the amount you can take out per pay check. But other than that, I don’t think so, just personal preference.

like

Related Posts

Cashed out my 401k yesterday and never felt so free. Was never expecting this to be real money

like

Just to put things into perspective, my friend works at a big tech company making $300k+ plus bonus. Rarely works more than 40 hours a week and has 100% 401k matching plus stock options. I feel like I mega f’d up going the lawyer route.

like

Until what age should a creative/creative director realistically expect to work in advertising? (Assuming he doesn’t want to retire)

like

I don't think I ever want to retire. I think I will leave education one day perhaps, but I'm not sure.

likehelpful

How would you reply to someone who says they are going to roll their 401k to their new employer, after you’ve offered to review their options for those funds? I feel like people just blindly do things

like

Two terrible presidential candidates, but 3 Supreme Court Justices likely to retire in the next 4 years. Do you like Elizabeth Warren or do you want to keep your job in finance #makefinancegreatagain

like

What household income would you need to be comfortable buying an 800k house? Assuming no other debt. Know there are many other factors besides HHI, just taking the temperature here

likehelpful

How do you all save for a down payment? Graduated last year. No debt. 1 month from having my emergency fund. Not contributing to 401k now but will contribute 6% in a month.

like

I had an old trad 401k that is now a rollover 401k under Fidelity Go and second trad 401k under Slavic, if I want to consolidate, how do I understand which plan is better for me to move one to the other?

like

Hi DeyC bowl, thoughts about GC for parents? I got my GC last year and was wondering if it will be beneficial for my parents to get one. I am not sure if they will end up staying here long term. I would‘ve liked them to come here and experience the life on a visit visa but there are no appointments available & don’t know how for how long. Factors to consider: 1. Time to get GC 2. Financial impact on parents given they hold property and pension in India 3. Anything else I should be thinking abt?

like

I’m planning to build out a set of wealth management tools and would love to get some feedback. When planning for retirement, how would you prioritize the following (and is there anything else you’d consider) 1) early retirement - minimizing the age required to get just enough wealth/ savings to retire (I.e., your target wealth at death is zero) 2) inheritance - maximizing the value of your wealth at the time of your deaths

like

Life after the classroom... Knowing that I want to retire and focus more on dyslexia, I am interested in your thoughts about creating a 501c3 and/or LLC to support reading for students and adults with dyslexia, parent advocacy, and understanding how to navigate best practices instead of de minimus that is offered by most districts, and legislative actions. Can anyone offer any advice? I'm OG trained with 4 teaching credentials, 3 MAs, and an EdD in Higher Education. We do make a difference!

like

MD2......4 years until vested, a little more than 6 until I can comfortably retire. Love working with clients and practitioners, but SO tired of the politics/ego game. Is going internal an option?

like

Should I buy nyc real estate? I’m 24, have no debt, and currently TC is 150k. Currently, I have 110k in savings + 401k and just started to get into investing. By June 2021, I’ll have at least 150k from savings, 401k, etc. I just got started investing this month in the stock market but now I’m thinking about real estate. There are condos in JC and brooklyn for 400k which doesn’t seem too bad but dont know if I’m being way unrealistic. I’d appreciate any advice!

like

Need investment allocation advice. Specifically "should we max out 401k?" More detail in comments

like

I'm very much an investing novice and looking for thoughts on how to maximize gains. I've had a small portfolio with schwab for a few years (intelligent portfolio on medium risk tolerance) that has been steady, but should I also be picking stocks on the side outside of their ETFs? And if so, where do you start for selection? 32 y/o with maxed out 401k if that makes a difference (though I do contribute very little for my HSA - should that be more of a thing?)

like

What’s everyone think about investing in rental property currently? I have cash sitting in the bank, already maxing out 401k, and doing monthly contribution to index fund, etc. I have no debt. My plan was to start investing in rental properties, but am hesitant given the crazy housing market currently. Is it better to wait?

like

Do Omnicom media agencies 401k match? Specifically wondering about OMD and PHD.

helpful

I’m 23 and I only have 50k in my savings. Is that good? What do I need to do to retire early

funnylike

Why do people think $100k is a high salary in 2021? Intellectually we understand that inflation continually reduces the purchasing power of each dollar, but emotionally we seem stuck to this specific dollar figure being the line for struggling banking comfortable.

likefunnyuplifting

Additional Posts

test post from test

like

Post for push testing

like

Didn't get a promotion or a bonus this year. So, I left and got both at another firm. 🙌🏼

like

+500k homeless ppl in the US, yet ppl care more about refugees from other countries being admitted to the system to receive US govt assistance. Why aren't we this passionate about our own citizens?

like

First time at DU.. I cannot even, fb fam 😱😍

like

Have a final round interview in big tech for a senior analytics manager role this week. A recruiter from EY-Parthenon reached out about a digital strategy director role which I would love. Had a chat and sent my info Since it’s preliminary stages - do I tell recruiter about my final round to speed up the process or will they pass on me if I try that? Recruiter is checking to see if team thinks my profile is a fit so I don’t even have a first round

like

I asked intern via Skype if she could walk to the printer and grab some papers for me since I was dialed in to a call at my desk. Responded “No, I don’t do intern work”..what’s a fair reaction to that

likefunny

Analysts, how much of your monthly pay check do you save?

like

Got a bad wrap on my prior project and HATE my current project. How can I exit gracefully without lookin like a slacker so I can hop into a role with a client I previously worked at with + feedback?

like

Im think Im gonna start doing my grocery shopping in duty free...

like

can anyone provide referrals to a tech consulting role? Currently 1 YOE as a BA on a tech team. (undergrad was MIS)

like

LinkedIn recruiter texted me to schedule a call tomorrow to share an update post final round. Is this any indication either way? Do they call for all outcomes?

like

Thoughts on this?

Post Photo
funnylikehelpful

Consulting men of Fishbowl- what are your must-have travel cosmetics products?

like

How do I work tomorrow?

like

Petite ladies (5'2" here) with curvy hips (not plus), best brands for jeans? Also, bootcut vs straight vs skinny leg? Too narrow at the ankles seems unbalanced and I want to wear flats when possible.

like

All these posts about Deloitte are scaring me. What is going on

like

Best tips or short courses to improve powerpoint skills? I feel I am just alright with ppts but woukd like to get better at it

like

“Curb your Enthusiasm” or “Arrested Development”?

like

Senior managers & up, how long are your resumes? I’ve heard if you’ve been working 10+ years, you can make it 2 pages, but does anyone care about details of what you did out of undergrad?

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