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Originally Posted by Flying Boxes
(Post 2791691)
Forgot to add, I hope you end up where you want!!!! :D
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Retirement Question
Originally Posted by navigatro
(Post 2791692)
I think you got the labels backwards.
A fund = traditional pension = defined benefit B fund = 401K (or company paid % ) = defined contribution Drat, that’s what I get for typing on a cell phone after waking up at 1am....thanks for that correction! |
Flying Boxes,
Can you pls clarify: Pilot OPTIONAL contribution out of paycheck of after tax 401K (should be ROTH 401K/Roth IRA) money: $14,100 What is OPTIONAL? 405 or some other plan? Thought 401K was limited annually and already included in your total calculations? THANX |
Originally Posted by KODI3
(Post 2792163)
Flying Boxes,
Can you pls clarify: Pilot OPTIONAL contribution out of paycheck of after tax 401K (should be ROTH 401K/Roth IRA) money: $14,100 What is OPTIONAL? 405 or some other plan? Thought 401K was limited annually and already included in your total calculations? THANX |
Originally Posted by Tokyo
(Post 2791626)
You can and should use your After-Tax sub-account to reach $56,000. Up to 20% of each check can be socked away here, where it can start generating tax-free earnings for your retirement. The great thing Fidelity offers now that Vanguard did not is the auto-sweep from after-tax into your Roth 401k each paycheck. This minimizes taxes on gains and eliminates calling in to speak to a representative.
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You don't want to confuse the after tax contributions ($14.1K) that can be converted within the plan to your Roth, with the 401K contributions (limited to 19K) that can be put in your 401K with before tax funds, or into your Roth 401K after tax. The 14.1K is what is referred to as a Mega Back door Roth, and not too many people do it (but should). Fidelity will not limit your contributions to that, but if you get too much deducted out of your paycheck, the company will limit their contributions to your B fund...:eek: so be careful and make sure you understand it.
Don't forget the catch-up contribution of 6K to 401K's for people over 50. |
Originally Posted by busdriver12
(Post 2792979)
Don't forget the catch-up contribution of 6K to 401K's for people over 50. |
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