We each have a pre-tax 401k and Roth IRA being maxed each year, as well as some taxable account money that was leftover after buying a house and having a child. Some additional income could still be saved too. Emergency fund is good to go, and HSA is being maxed as well.
For the remainder of the saving we can do I'm thinking it would be best to "convert" the taxable brokerage money + remaining excess income to my Roth IRA via MBDR, and selling taxable shares to cover any budget shortfalls due to increased paycheck withholding.
My Fidelity 401k plan supports automatic "Roth in-plan conversion" of after-tax contributions which can then easily be rolled over to my Fidelity Roth IRA.
My wife also has access to a 457b though, so just want to make sure i'm not missing anything with my plan. I also prefer the investment options of the Roth IRA vs the available funds for the 457b though.
I'm also assuming both of these options would be superior to a 529 plan, which has more limited tax advantages, and considering Roth IRA contributions can be withdrawn prior to age 59.5 if needed for education expenses.
Should i hit the go button on the MBDR?
For the remainder of the saving we can do I'm thinking it would be best to "convert" the taxable brokerage money + remaining excess income to my Roth IRA via MBDR, and selling taxable shares to cover any budget shortfalls due to increased paycheck withholding.
My Fidelity 401k plan supports automatic "Roth in-plan conversion" of after-tax contributions which can then easily be rolled over to my Fidelity Roth IRA.
My wife also has access to a 457b though, so just want to make sure i'm not missing anything with my plan. I also prefer the investment options of the Roth IRA vs the available funds for the 457b though.
I'm also assuming both of these options would be superior to a 529 plan, which has more limited tax advantages, and considering Roth IRA contributions can be withdrawn prior to age 59.5 if needed for education expenses.
Should i hit the go button on the MBDR?
Statistics: Posted by CostcoBoxWine — Fri Jun 28, 2024 10:05 pm — Replies 1 — Views 100