I will be receiving 15 months of severance pay before officially retiring in April 2025. I plan to add an additional $100k to my retirement portfolio during the 15 months period but unsure how to distribute the $100k to the various accounts (tax-deferred, tax-free, taxable).
Currently our tax-deferred account (401k) is 5x our taxable accounts (checking/saving/brokerage) and 25x our tax-free accounts (Roth IRA and HSA).
I plan to continue to max out our Backdoor Roth IRA in 2024 and 2025 while I receive severance pay. However, our Roth IRAs was just opened in 2022. My employer does offer a Roth 401k, but I have not contributed anything at the moment. Should I?
I plan to continue to max out our HSA contributions in 2024,2025 and while receiving retiree healthcare from my former employer.
What are some other recommendations on how to distribute the $100k to the various accounts (tax-deferred, tax-free, taxable) during the 15 months of severance pay? For example, should I try to build up my taxable account as much as possible? Should I start contributing to the Roth 401k?
Currently our tax-deferred account (401k) is 5x our taxable accounts (checking/saving/brokerage) and 25x our tax-free accounts (Roth IRA and HSA).
I plan to continue to max out our Backdoor Roth IRA in 2024 and 2025 while I receive severance pay. However, our Roth IRAs was just opened in 2022. My employer does offer a Roth 401k, but I have not contributed anything at the moment. Should I?
I plan to continue to max out our HSA contributions in 2024,2025 and while receiving retiree healthcare from my former employer.
What are some other recommendations on how to distribute the $100k to the various accounts (tax-deferred, tax-free, taxable) during the 15 months of severance pay? For example, should I try to build up my taxable account as much as possible? Should I start contributing to the Roth 401k?
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