Having been lurking for years but somewhat shy to include my numbers; sometimes I think there is a lot of "humblebragging" on this forum I didn't want to add to- like "I have 21 million in the bank; can I afford to go to Starbucks?". However you'll need my dollars to help make a reasonable suggestion. Essentially I'm not sure if its worth it to put a large amount into a higher fee 401K to allow backdoor roth donations.
Age:53
current income: about 400K- likely stable; plan on working about 6-8 more years hopefully. Like the job.
2 kids each with maxed out 529s; headed for state schools likely-
Have 1.3 million in employer 401K. Am being charged essentially 0.25% for assets under management and slightly worse ER for vanguard funds; for example VTI is 0.05%. So the total I am paying is about 0.30% for my mix of 70% stock (VTI, VXUS) and 30% bonds/money market. Am now saving Roth 401K and about 150K of the total is Roth money; the rest pretax.
Have 1.4 million in a traditional IRA. Am investing the same 70/30 split. Through vanguard I am paying 0.03% for VTI; average of all expense is 0.04%.
Also have about 55 thousand in a Roth IRA I had been building for a few years before a company change led to the dissolution of a defined benefit plan I rolled into a traditional IRA- have not contributed to backdoor Roth since then as I'd be paying prorated taxes on it.
Have about 1.2 million in a taxable account at Vanguard with 70/30 split; VTI and money market. 400K in a separate real estate investment.
Total assets 4.3 million (but that's an exaggeration since the pretax will all be taxed).
Annual spending: roughly 110K in taxes and 180K for all expenses leaving large amount to save.
When I look at the total dollars having a backdoor roth at 8K yearly (I can't do mega backdoor Roth; have checked with employer) probably won't move the needle. I just like the idea of having Roth dollars and think I'll have a high tax rate in retirement. I think I'll be charged $3,500 yearly more to have my TIRA converted to 401K. Is that worth it to be able to save $8000 Roth a year?
Thanks in advance! chucklehead
Age:53
current income: about 400K- likely stable; plan on working about 6-8 more years hopefully. Like the job.
2 kids each with maxed out 529s; headed for state schools likely-
Have 1.3 million in employer 401K. Am being charged essentially 0.25% for assets under management and slightly worse ER for vanguard funds; for example VTI is 0.05%. So the total I am paying is about 0.30% for my mix of 70% stock (VTI, VXUS) and 30% bonds/money market. Am now saving Roth 401K and about 150K of the total is Roth money; the rest pretax.
Have 1.4 million in a traditional IRA. Am investing the same 70/30 split. Through vanguard I am paying 0.03% for VTI; average of all expense is 0.04%.
Also have about 55 thousand in a Roth IRA I had been building for a few years before a company change led to the dissolution of a defined benefit plan I rolled into a traditional IRA- have not contributed to backdoor Roth since then as I'd be paying prorated taxes on it.
Have about 1.2 million in a taxable account at Vanguard with 70/30 split; VTI and money market. 400K in a separate real estate investment.
Total assets 4.3 million (but that's an exaggeration since the pretax will all be taxed).
Annual spending: roughly 110K in taxes and 180K for all expenses leaving large amount to save.
When I look at the total dollars having a backdoor roth at 8K yearly (I can't do mega backdoor Roth; have checked with employer) probably won't move the needle. I just like the idea of having Roth dollars and think I'll have a high tax rate in retirement. I think I'll be charged $3,500 yearly more to have my TIRA converted to 401K. Is that worth it to be able to save $8000 Roth a year?
Thanks in advance! chucklehead
Statistics: Posted by Chucklehead — Sun Feb 18, 2024 11:41 pm — Replies 1 — Views 182