How do these work? Is it best to maximize everything? I’m getting 1:1 matching up to the limit on the 401k front. How does the Mega backdoor work at the end? Also, can one move the 401k to be Roth? Is that a good idea? Would appreciate any insights!
Watch a couple of videos on these topics on https://youtube.com/@rob_berger?feature=shared or https://youtube.com/@TaeKimFinancialTortoise?feature=shared. You’ll get all the answers that you need.
Thank you for the links!
Hello microsoft
Actually Meta lol
Wow i didnt know meta also did this
I would do research outside of Blind but rough answers are: 1. Max out match 2. Max out pre tax contribution (reducing current taxable income) 3. Set up after tax contributions and Roth conversion aka mega-backdoor (up to the limit if you can tho it’s pretty high) 4. (Optional) Convert to Roth IRA for better investment options
Thank you!
Convert to IRA before after-tax 401k contributions have too much gain. That’s the point.
Overview of Mega Backdoor. https://uspersonalfinance.substack.com/p/mega-backdoor-roth-401k-34500-contribution How it fits into overall saving strategy (complex, from Reddit Personal Finance):
Overall saving strategy basic https://uspersonalfinance.substack.com/p/personal-finance-101-advanced
Leaving in Roth 401k vs. moving to Roth IRA
1:1 matching? Which company does that and what is your base TC?