How to do Roth? Should I do mega back door?

Facebook realzuck
Jul 5 22 Comments

I’m 29 years old. Just started at Facebook total comp 245k.

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TOP 22 Comments
  • Google kRUn66
    First pre-tax, then after-tax with mega-backdoor, and ira after tax and rollover to Roth.
    Jul 5 10
    • Palo Alto Networks onhb57
      Hsa basically turns into a retirement account when you're old enough. And I assume Facebook has the minimum required deductible to be called high deductible, and I assume you don't have a fuck ton of health problems
      Jul 5
    • Google kRUn66
      Backdoor ira does not work with 250k (it's not pre-tax). It needs to be after tax so first pre-tax 401k seems better. For HSA you need to plan ahead and pick the right plan. HSA is better than pre-tax (if no match is available)
      Jul 5
    • Palo Alto Networks onhb57
      I'm specifically asking why you are recommending doing a mega backdoor before doing a backdoor
      Jul 5
    • Google kRUn66
      I meant no order there. They are both after tax to Roth. I don't know of any benefit in doing one first. Let me know if there is one
      Jul 5
    • Palo Alto Networks Clowns
      @onhb57, does Palo Alto offer mega back door ? I don’t think so, right?
      Jul 5
  • Google FfEA67
    Roth makes sense if you anticipate your tax at retirement to exceed your current tax rate. How much cash do you have on hand post tax?
    Jul 5 5
    • Facebook realzuck
      OP
      I only have like 25k cash right now. So what should I do
      Jul 5
    • Google FfEA67
      Pre tax probably makes sense for now. I would hold off on a mega backdoor personally until you have more liquid assets as a safety net.
      Jul 5
    • Facebook / Eng
      madhuridix

      Facebook Eng

      PRE
      Facebook
      madhuridixmore
      Such bad advice
      Jul 7
    • Facebook realzuck
      OP
      What’s good advise then?
      Jul 7
    • Facebook / Eng
      madhuridix

      Facebook Eng

      PRE
      Facebook
      madhuridixmore
      If you make a decent income (200+k) do all of the following:
      1. contribute the maximum to your 401k
      2. Contribute 5500 to an IRA and rollover to Roth
      3. Contribute to a post tax 401k account (mega backdoor) if your company allows and roll it over to a Roth 401k.
      4. Max out your HSA if you have a HDHP.
      Jul 7
  • Facebook 44ffb4fb
    MPK or SEA?
    Jul 5 1
  • Microsoft tfsUEwWt
    Always do mega.
    Jul 5 0
  • Facebook ImIrnMn
    Max out pre-tax 401k and on top do both Mega and "regular" backdoors. Our 401k has the mega built in - after tax contributions+auto roth conversion+rollover to roth IRA anytime. In addition you should do regular backdoor - 6k into traditional IRA with immidiate rollover into Roth IRA
    Jul 6 0
  • Oz Management / Eng Jams
    Is there an income limit on traditional ira contributions?
    Jul 6 0