JohnnyBGoode
Recycles dryer sheets
As I am 50+, I am currently funding my corporate 401K at $2,000 a month to take advantage of the increased contribution limit once you hit 50 ($24,000 annually)
I am currently planning on FIRE'ing in April of this year from my corp job (and thus will have contributed only $8,000 by that time at current rate).
My income level has been such that the 401K has been the only tax-deferred option available to me for many years. Even once I FIRE I will still be executing remaining stock options for several years and the income level from that will still put me over the regular or ROTH IRA limits.
My DW and I own a small business in town (with 5 employees) and currently offer a SIMPLE IRA for them (and my DW). We do match 3% of their contribution so we can contribute as well. SIMPLE IRA limits are $12,500 plus $3,000 catch up I believe.
I still want to be able to maximize my tax-deductable contributions this year (naturally).
So a couple of questions:
- the 401K limits seem the best ($24K vs $16.5K) - so do I have to try to get to that $24K before I FIRE in April? - possible but that is a heck of monthly deduction
- if I have part of the year under a 401K and part of the year under a SIMPLE IRA - what would be annual limit be?
Thanks!
I am currently planning on FIRE'ing in April of this year from my corp job (and thus will have contributed only $8,000 by that time at current rate).
My income level has been such that the 401K has been the only tax-deferred option available to me for many years. Even once I FIRE I will still be executing remaining stock options for several years and the income level from that will still put me over the regular or ROTH IRA limits.
My DW and I own a small business in town (with 5 employees) and currently offer a SIMPLE IRA for them (and my DW). We do match 3% of their contribution so we can contribute as well. SIMPLE IRA limits are $12,500 plus $3,000 catch up I believe.
I still want to be able to maximize my tax-deductable contributions this year (naturally).
So a couple of questions:
- the 401K limits seem the best ($24K vs $16.5K) - so do I have to try to get to that $24K before I FIRE in April? - possible but that is a heck of monthly deduction
- if I have part of the year under a 401K and part of the year under a SIMPLE IRA - what would be annual limit be?
Thanks!