Originally Posted by
PurpleToolBox
^^^^ THIS ^^^^
Maximize your DC plan every year. I elect and maximize the 401kROTH. Then using company contributions and post-tax money, I maximize a 401k up to the maximum $57,000/year for 2020 (which includes the $19,500 in the 401kROTH). CAREFUL, if you elect more than about 5% post-tax deferrals, you could hit the maximum early and cheat yourself out of free company contributions.
FDX ALPA R & I puts out a very good circular on this. CLICK HERE
If your Disability Sick account exceeds 686CH, the overage shall be deposited into the DC Plan up to the IRS limit. See CBA 14D and 14E.
Fidelity allows you to auto roll over the post-tax 401k money into your 401kROTH each month. It's called the Automatic Roth In-Plan Conversion. I do believe it might create very small tax penalties at the end of the year. Depending on your personal situation, this may/may not be the best option for you depending on what tax brackets you end up in at later life. Fidelity can help you with this decision.
Also, I recommend the Charles Swab financial review and the ALPA retirement seminar. Fidelity's is good too. So many options.
All great suggestions. As I understand it, If you let Fidelity automatically convert your after tax dollars to Roth you should have no year end tax implications since you already pay tax before it gets deposited and there will be no capital gains since it’s immediately converted. However, if you wait to convert and there is a capital gain or loss that will affect taxes.
Save early. Save often. Make hay when the sun is shining as there will be rainy days eventually.