Maxing out 401k contributions

[Jackburton]

The HCE is the reason we have the after tax contribution option in the 401k. You can put money in there (up to 5%) and then roll it over into a personal Roth IRA before you retire - most ppl do it once a year. The 5% doesn't count towards the 401k max.

I don't have personal Roths outside of my 401k, otherwise I'd just contribute straight to it. I have a brokerage account I use that consists of options trading and the like. I use my brokerage account to drop extra cash in that funds my ETF's and some option trades I do from time to time. The after tax section of the 401k is basically a savings account for most folks.

 

[IVE GOTTA PACKAGE 4U]

I don't have personal Roths outside of my 401k, otherwise I'd just contribute straight to it. I have a brokerage account I use that consists of options trading and the like. I use my brokerage account to drop extra cash in that funds my ETF's and some option trades I do from time to time. The after tax section of the 401k is basically a savings account for most folks.

Would a Roth IRA help you to avoid the mess you went through last year?

 

[Jackburton]

Would a Roth IRA help you to avoid the mess you went through last year?

Not really, I'd just move the money to my brokerage account like I did with the overage last year. I don't think I'm going to hit the same amount this year, behind about 3k so far vs last year.

 

[Orion inc.]

Anything over 8 hours of OT you are working for free.

Your statement lacks mathematics.

You said it yourself---you tend to lose money when you work 8 or more hours of OT.

Where did I say I lose money?

I was simply describing how the increase in hours has diminishing returns to take home pay. Factors such as increase taxes and increase contributions to my Roth are the reasoning. It all comes out in the end when you file your taxes if you've overpaid or underpaid, there's no "secret" income threshold, it's directly related to your deductions and tax credits. In other words, it's a simple math equation as to what you bring home every week. The government has yet to tax people 100%.

Under your current logic anyone who earns more than their deductions and tax credits is losing money. This is also know as not paying any taxes. In order to achieve this you must earn on the lower end of the income scale generally speaking.

It's interesting you claim unions promote mediocrity, yet you are doing the same thing by telling people they work too much based on their tax bracket.

I'd rather work for a dollar and pay a quarter than not work for the dollar to avoid paying the quarter.

Diminishing returns=losing money.

TTKU

I understand, mathematics isn't your strong suit, then again you adjust your withholding so you can squeeze more money out of your vacation. Things must be tight to have to do that. It's cool man, some folks just don't understand the big picture, I don't have time to teach a math class.

Dave, he's right on this.

 

[Brownslave688]

Dave, he's right on this.

Of course he is.

 

[IVE GOTTA PACKAGE 4U]

Of course he is.

Is he?

 

[Orion inc.]

Is he?

I think he is, given his situation.

But this is why I think a financial adviser and a tax attorney are worth their money. The more complex your situation is, the better to have truly professional experts who are objective to your goals and help you stay disciplined.

 

[IVE GOTTA PACKAGE 4U]

I think he is, given his situation.

Guess the best I can do is save?

 

[Orion inc.]

Guess the best I can do is save?

You're probably doing better than 99% of the rest of the country for retirement.

That's the scary thing. No one saves anymore lol

 

[Brownslave688]

You're probably doing better than 99% of the rest of the country for retirement.

That's the scary thing. No one saves anymore lol

Parents have to teach their kids to save also.

One of my wife's good friends is a pharmacist. Her dad made them save 10% of their income from day 1.