Is my general strategy correct?
Currently I contribute just enough 401k to maximize the company match.
I then contribute the rest to Roth 401k to fill the remaining gap up to the $19.5 limit.
Is this what everyone else is doing?
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comments
On the topic of strategy, keep in mind that 19.5k isn’t a super special number for Roth. Most good plans offer mega backdoor making 19.5K more of a technicality for Roth (if you do immediate backdooring).
Also on the topic of strategy: It’s wise to consider having a healthy mix of pre and post tax. Pretax *does not automatically mean you will have to pay tax on it*: it means it will be counted as income at distribution. If you have a small mix of pretax and Roth, you can use pretax up to desired tax bracket (remember with standard deduction taxes don’t start until the tens of thousands…) and then use Roth once you’ve hit your desired tax rate. This nets you a lower tax rate than strictly one or the other.
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