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Discuss 401k strategy +roth
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Date: December 3rd, 2025 9:17 PM Author: Naked Charcoal Office Rigor This year I am maxed out. My employer has 403k so any contributions to 403k decrease the cap from 70k. But next year my w2 employer will be 401k where I will max out pretax and get 20k match.
Then for my solo401k I can still put 70k as an employer. So I can put 35k pretax. And another 35k as posttax and immediately convert that to roth401k->regular roth->bitcoin |
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Date: December 3rd, 2025 9:21 PM Author: arousing partner love of her life LJL no. Also to really be ballin you need to qualify for executive non-qualified deferred comp plan and a rabbinical trust so there are no limits. Once you’re that ballin you can talk to me. Right now you aren’t cool enough to talk to me. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482014) |
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Date: December 3rd, 2025 9:29 PM Author: Naked Charcoal Office Rigor Stfu jew. I'm trying to figure out if I max out employee contribution on one 401k, will it decrease the 70k cap on my solo 401k. I know I could put 70k as employer as long as my 1099 income is above 350k. But if I only put 30k as employer, I'd like to put another 40k posttax (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482044) |
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Date: December 3rd, 2025 9:40 PM Author: peach sound barrier No, employee and employer contributions are completely separate. The only way that employee contributions decrease your employer limit is if there is an employer match or something (which counts against your employer limit).
That said, mega backdoor Roth is probably not a smart strategy if you are earning $350k+ as a singlemo. The only way that move is more advantageous than a tax deferred employer contribution is if your tax bracket is higher than 35% after retirement, which is unlikely for most people. |
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Date: December 3rd, 2025 9:44 PM Author: arousing partner love of her life Regular v. Roth is really about whether you think tax rates will be higher in the future or lower. The tax bracket stuff is nonsense since you have to be a legit loser to ever fall outside of the highest bracket. The people maxing both are never falling out of the highest bracket. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482114) |
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Date: December 5th, 2025 12:04 AM Author: peach sound barrier If you anticipate generating $650k+ in annual income after retirement, then it is true that you are just gambling with future tax rates. But 99.9% of the U.S. population are apparently "legit losers" who will not be in that bracket post-retirement. If one plans to retire before getting to the point where one will earn $650k in passive income annually, then a traditional 401k is a far better option. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49485167) |
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Date: December 5th, 2025 1:58 PM Author: Naked Charcoal Office Rigor Tax bracket between 650k and 400k isn't much different. You only really gain if you have 24% or lower tax bracket in retirement. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49486389) |
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Date: December 5th, 2025 4:06 PM Author: peach sound barrier Most people aren't going to be earning $400k in passive income in retirement, either. That would require a nest egg of around $10M, give or take. If you anticipate 8 figures of retirement savings, that changes the calculus, but most people are going to be better off contributing to traditional 401k's if you are in the top tax brackets. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49486758) |
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Date: December 5th, 2025 5:59 PM Author: arousing partner love of her life LJL. Poor. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487066) |
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Date: December 3rd, 2025 9:41 PM Author: peach sound barrier After reading the first post in this thread, if you get an employer match at your W2 job, that will decrease the limit that you are allowed to make as an employer contribution to your solo 401k. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482097) |
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Date: December 4th, 2025 1:01 PM Author: Naked Charcoal Office Rigor That's incorrect. That's true only at my current 403k job. But 401k does not decrease 70k for another 401k. I could easily put 70k as employer into my 401k next year if I produce 350k net income in 1099. But I'll produce less.. on another hand after-tax employee contribution->backdoor roth would be an option to top solo401k but free solo401k do not allow backdoor roth option. I don't want to pay $1000/yr just to put an extra 30k in backdoor roth (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49483371) |
Date: December 3rd, 2025 9:41 PM Author: Ivory curious preventive strike how do you have a solo 401k in addition to an employer 401k? (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482092) |
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Date: December 3rd, 2025 9:48 PM Author: arousing partner love of her life The limit applies to all qualified plans. 2 or 32 the max annual contribution is the the same. The only way around the limits is if your employer is generous enough to offer a non-qualified deferred comp plan but those are usually limited to the senior executives who will never need the money and the use these plans to park stock for future charitable giving purposes (for the most part). I have to write novels about this shit for our annual proxy statement as on top of everything else I do I write CD&As too. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482121) |
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Date: December 3rd, 2025 9:49 PM Author: Ivory curious preventive strike can you represent CSLG in his divorce (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482125) |
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Date: December 3rd, 2025 9:50 PM Author: arousing partner love of her life I have practiced law for 23 years now and have legitimately done a little bit of everything at one point or another. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482132) |
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Date: December 3rd, 2025 10:17 PM Author: Ivory curious preventive strike including matrimonial shitlaw while you were at a v25 (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482203) |
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Date: December 5th, 2025 6:01 PM Author: big abode hominid wtf, we graduated the same year but I'd have no idea how to do shitlaw nonsense. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487072) |
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Date: December 6th, 2025 4:54 AM Author: arousing partner love of her life Guy who just cuts and pastes from NVSA forms all day talking shit about shitlaw. Biglaw is just shitlaw with bigger numbers on the deal docs and less annoying clients. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487957) |
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Date: December 3rd, 2025 9:48 PM Author: Effete maize voyeur theatre (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49482122) |
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Date: December 5th, 2025 6:08 AM Author: fighting garnet dog poop home Best strategy that out performas all others: invest in things when they're super low and ride them up to incredible all time highs (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49485381) |
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Date: December 5th, 2025 2:32 PM Author: marvelous piazza love this plan (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49486475) |
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Date: December 5th, 2025 1:56 PM Author: Naked Charcoal Office Rigor If next year my 1099 income after expenses is 200k, I'll be able to put 40k into a free solo401k. If on the other hand I pay up for a custom 401k (i.e. mysolo401k), I'll be able to make another 30k after tax->roth. That's 30k/yr that instead of going into taxable brokerage goes into roth. I.e. if I have 10%/yr return that's 3k/yr growing cumulatively on which I either pay 15-20% capital gains tax eventually or pay 0 tax. I guess that's too much of a hassle for a few shekels (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49486377) |
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Date: December 5th, 2025 3:06 PM Author: Naked Charcoal Office Rigor If I am able to put extra 40k after tax roth each year instead of taxable brokerage for 10 years, and annual growth is 10% that's 4+4.4+4.8etc i.e. at 10 years I'll have 60k tax free instead of paying 15%+ tax. But if I add 40k each year then at 10 years I'll have extra 350k. If I then stop contributing, at 20 years that's still 750k. Not such a small amount. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49486608) |
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Date: December 5th, 2025 7:07 PM Author: azure titillating orchestra pit Lolling hard at 10% consistent YOY (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487186) |
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Date: December 5th, 2025 7:53 PM Author: Naked Charcoal Office Rigor What was average qqq return in the past 20 years? Anyway if I put 40k/yr every year for next 10 years and then stop(400k total) and hold, at 30years that's extra 5million that I don't have to pay capital gains on. Roth is really powerful. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487278) |
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Date: December 5th, 2025 8:22 PM Author: azure titillating orchestra pit LJL you’re not gonna make it (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487335) |
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Date: December 5th, 2025 7:58 PM Author: Effete maize voyeur theatre So the strat is just max out everything tax deferred and initially taxed? (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487286) |
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Date: December 5th, 2025 8:06 PM Author: Naked Charcoal Office Rigor Initially max out pretax because I'm in a higher tax bracket. But if there is anything leftover in the 70k solo401k then do posttax->roth conversion. If my 1099 job grosses 300k, I'll take 100k deduction, 40k employer pretax, and then posttax which actually isn't that bad if you think about 10% annual growth tax free. And the 70k limit is likely to go up to 80k soon. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487303) |
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Date: December 5th, 2025 8:44 PM Author: Naked Charcoal Office Rigor Also I think since I'm leaving my current job I should convert this 401k (about 150k) into roth, since that will allow maximum years of tax free growth. While any new 401k, 457k, etc is pretax and I'll be able to make those conversions or distributions in the low tax bracket in 50s or 60s (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487381) |
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Date: December 6th, 2025 1:14 AM Author: peach sound barrier There is no reason to perform a Roth conversion when you are in the highest tax bracket (unless you are making a large bet that tax rates will go up in the future). Leave it in traditional until you have a year when your income is lower because you quit working or whatever other reason. (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49487867) |
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Date: December 6th, 2025 1:35 AM Author: Naked Charcoal Office Rigor That does not account for tax free growth. Compare: 1) pretax 401k 100k growing @ 10% for 20years. 730k. Then even if I am in lower bracket I may have to give up 200k. 2) pay 40k from my savings account now. But 100k grows tax free. 3) I will have new 401k and when I convert it in the future the less I have the lesser is my tax bracket. 4)roth allows me to buy bitcoins, tqqq. 401k does not. |
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Date: December 6th, 2025 2:25 AM Author: fighting garnet dog poop home Another possibly worthwhile aspect for those who want to retire early is the ability to pull principal out before 59.5 without penalty
This could be important if you're going really lean based entirely on your post tax savings and just need something to offset sequence of return risk |
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Date: December 6th, 2025 10:24 AM Author: Naked Charcoal Office Rigor I might want to take money out before 59 but not from roth.. I cannot roll 457k into anything so it's natural to take it out first. Preferably in low tax bracket. If I have a lot of money in pretax401k when I'm old any distribution or conversion will be pushing me into higher brackets. My goal is to mainly live off capital gains from a taxable brokerage but roth would be a powerful supplement (http://www.autoadmit.com/thread.php?thread_id=5805960&forum_id=2\u0026mark_id=5310911#49488228) |