{ "media_type": "text", "post_content": "Should I be maximizing contributions to only my employer’s Roth 401k (all $19.5k) or should I be splitting the max between Traditional 401k and Roth 401k with varying percentages (i.e. 12% to Roth 401k and 8% to Traditional 401k)?", "post_id": "5ebb0c54a2d79f002ba3b501", "reply_count": 5, "vote_count": 1, "bowl_id": "5b3f7377ab53db00136f7b4c", "bowl_name": "FIRE Financial Independence Retire Early", "feed_type": "bowl" }

Should I be maximizing contributions to only my employer’s Roth 401k (all $19.5k) or should I be splitting the max between Traditional 401k and Roth 401k with varying percentages (i.e. 12% to Roth 401k and 8% to Traditional 401k)?

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Fwiw my current base is $88k and AIP is 10%. Mortgage (principal + interest, escrow) and HOA are $2207/monthly, however I have a roommate who is paying $1200 in rent

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Max traditional 401k, then backdoor Roth. Traditional 401k is better for early retirees cause of a Roth IRA conversion ladder

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I max out Roth cause gains are tax free but if you have excess of 19.5k you can contribute you should look into doing a back door Roth. Not quite sure how to do it but it allows more than 19.5k in 401k I think

I do a backdoor roth (hopefully I do it correctly lol). I contribute the max to a traditional IRA and then convert it to a Roth IRA. The key is that you do this in the same year so you only pay taxes on the gains / losses.

And don’t forget mega backdoor Roth if your employer allows after-tax contributions and in-service withdrawals!

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