What to contribute after max out Pretax 401k? MICROSOFT Fidelity
There's 2 other options in Fidelity which are 1. ROTH 2. AFTER-TAX (NON-ROTH) What percentage should i put in? I don't need extra cash for expenses. Also, what option to choose for "in-plan coversion" vs "in-service withdrawal" Already setup max on hsa, espp. Base 158k Thanks
I assume you’re talking about an IRA? your income is above $144k you’re “technically” ineligible for a Roth IRA, but you have an option to do a “backdoor Roth”, which is what I do. That being said I’m assuming your employer doesn’t do that for you. If that’s the route you take, the max contribution for a tax year is $6k if you’re under the age of 50.
Do you use Fidelity at amzn?
I don't think they mean ira since they mention fidelity. They probably use netbenefits 401k where the options are pretax, roth, after tax.
If you max out pretax, you cannot contribute to roth 401k. But you can do after tax 401k and convert (aka mega backdoor roth)
Ok. So after tax (non roth). These names are confusing 😂 thanks
Yes but select roth in plan conversion "Convert my after tax contributions"
Do the following in order, for as far as you can go down the list: -max out pretax 401k -megabackdoor: max out after-tax 401k and do "in-plan conversation" -backdoor: contribute to traditional IRA convert to Roth IRA
Never do Roth. Do traditional + after tax
😊
After tax 401k + IRA after tax. Benefit is when you take out money, you don't need to pay tax on principal amount.
After-tax(non roth) you meant?
Yes