Most people think the annual 401k limit is $70k. They're wrong. If you switch jobs or have a side hustle, you can open up a second 401k limit. Learn the strategy to contribute up to $140,000 into tax-advantaged accounts this year.
I think you missed that most employers require 6 - 12 months of employment before the employee can contribute to the company retirement investment plan.
Hello Andre. I changed jobs and did not realize I would get to a job with similar match. So I am fully done with 70K limit with my first employer (All 23K+ limit done). I can still do after tax with Roth conversion in new employer also?
What if the new employer doesn't have in plan conversion to Roth. Can I contribute post tax, roll over to traditional IRA and then convert to Roth there?
If your plan allows it, you can roll the After-Tax directly into a separate Roth IRA. You don't need the Traditional IRA step in there. This still requires that your plan allows these while working there.
Thanks, Andre! You could also note the potential for catch up contributions for people 50+.
I need to make a dedicated post for my 50+ audience! There is lots of different levels of catch up right now that open up interesting opportunities.
I think you missed that most employers require 6 - 12 months of employment before the employee can contribute to the company retirement investment plan.
I have not seen that at any big tech company, especially not FAANG.
Hello Andre. I changed jobs and did not realize I would get to a job with similar match. So I am fully done with 70K limit with my first employer (All 23K+ limit done). I can still do after tax with Roth conversion in new employer also?
Only 1-2 more paychecks in the year, but you can go out swinging!
What if the new employer doesn't have in plan conversion to Roth. Can I contribute post tax, roll over to traditional IRA and then convert to Roth there?
If your plan allows it, you can roll the After-Tax directly into a separate Roth IRA. You don't need the Traditional IRA step in there. This still requires that your plan allows these while working there.
Ok but what if my plan doesn't allow this? Can I just contribute post tax, roll over to IRA and do Roth conversion there?
I am not understanding why your plan would allow rolling into an IRA but not a Roth IRA?
I see, it makes sense.