Just my luck.
Planning to FIRE in December and I can finally have a Roth 401k starting October 1.
I think I’m going to pass.
The plan is to manage taxable income 2022-2026 until we both are eligible for Medicare. DW has an adjunct college professor salary with no “affordable” medical insurance.
I’m hindsight, we have too much in tax deferred accounts.
We will draw from our cash and Roth IRAs to carry us through.
I stopped contributing to the regular 401k earlier this year, paid the tax, and am adding it to the 2022 cash to live on.
The “5 year rule” tells me it’s not worth depositing my entire pay for October-December to max out the Roth 401k because I might incur a penalty for “early withdrawal”.
Roth conversions this year also have a 5 year rule, so I’ve ruled that out.
Wondering if I’m missing anything here as I over-analyze these last few months?
I’ll be glad after I just “take the plunge”.
Planning to FIRE in December and I can finally have a Roth 401k starting October 1.
I think I’m going to pass.
The plan is to manage taxable income 2022-2026 until we both are eligible for Medicare. DW has an adjunct college professor salary with no “affordable” medical insurance.
I’m hindsight, we have too much in tax deferred accounts.
We will draw from our cash and Roth IRAs to carry us through.
I stopped contributing to the regular 401k earlier this year, paid the tax, and am adding it to the 2022 cash to live on.
The “5 year rule” tells me it’s not worth depositing my entire pay for October-December to max out the Roth 401k because I might incur a penalty for “early withdrawal”.
Roth conversions this year also have a 5 year rule, so I’ve ruled that out.
Wondering if I’m missing anything here as I over-analyze these last few months?
I’ll be glad after I just “take the plunge”.