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Ok, got it. Thank you!

But, when rolling over Roth 401k to Roth IRA, does it keep track of what was originally contributions into the Roth 401k vs what is gains in the Roth 401k? Or does it all get rolled over as contributions?

Thank you for the response. I guess a simpler way of asking the second part is: How are the contributions and the gains from the Roth 401k treated once they are rolled over into the Roth IRA?

Hi, I have a 401k account with an old employer that I never rolled over to my current employer. A portion of that 401k is in Roth 401k. Am I able to roll that Roth 401k money to a Roth IRA and the Traditional 401k money to the Traditional 401k of my current employer? Or does the rollover have...

Thanks for your reply, I appreciate it. The recharacterization can be done online. So, I actually filled out the form last night to recharacterize the excess from Roth IRA to (non-deductible) Traditional IRA for tax year 2018. Once that processes (supposed to be within 3 business days), I'll be...

Thanks for this. How about if I were to recharacterize the contribution from a Roth to a Traditional instead of withdrawing the excess? So, in my example, what if I recharacterized the $500 excess to a Traditional and then converted that traditional to Roth all for the 2018 tax year? Do I need...

Yes, I did some of this today... I created new Tira accounts for both of us. I couldn't take excess contributions directly from Roth to traditional IRA. I needed to transfer excess to brokerage (or eyf to bank). Then, I can transfer {in 3 business days) from brokerage to the new Tira. I'll then...

Thanks for your reply. Yes, I do most likely plan to withdraw contributions before 59.5, so I would like to keep the amount of tracking that I need to do for each one to be kept to a bit of a minimum if possible. Thanks again!

True, but my plan going forward is to estimate how much Roth I'll be allowed to make and make monthly contributions up to that amount. Then, do one lump sum at the end of the year for the difference into a Trad. IRA and then roll into the Roth. The only reason that I'm planning on doing it that...

No, neither of us have traditional IRAs at this point.

Hi, This is my first time needing to use this strategy and I only have a couple weeks left to figure it all out, so I'm looking for some advice. Based on 2018 income, my wife & I can each contribute to a Roth IRA, but not the full amount. Let's call it $5,000 each for what we're allowed to...

This. My wife & I are in our mid-30's and hoping to FIRE no later than 50. Maybe as early as 45. Our current travel budget is about 10% of our total spending and we go on 4-6 trips per year. Usually 2-4 of them being international. We spend a good amount of our money on travel. If we spent...

You'll definitely need some clarification from your HR dept, but if you're contributing to your After Tax 401k, that's different than Roth 401k. I believe that the HCE limits apply to Roth and Traditional 401k. So, I'm assuming what your HR dept meant is that you can still only contribute...

We use BenefitWallet (mybenefitwallet.com which is a part of savedaily.com). It's offered through megacorp, so I'm not sure if it's available for anybody to sign up. It requires $1k to be kept in cash reserve, but the rest can be invested. I believe the monthly fee is $3.50, but it gets paid for...

Agreed... I selected "other" because that was the best option. DW & I are both 34

Yes it makes sense in theory, but in reality, that money has to come from somewhere. Most likely from a brokerage account where the gains and dividends are going to use up a good portion of that tax bracket. That means that I won't have room in the tax bracket to convert $100k/yr of future...

Hi, Thanks for the reply and the links. I'm not 100% sure off the top of my head what my balances will be per account, but I've run the projections before and it comes down to the fact that my plan is doable if I were able to access enough of that money between FIRE and 59.5. I project my total...

Thanks for your reply. I do think that the backdoor Roth is something that I'll eventually need, but won't need for a while if we switch to traditional 401k contributions. Like I said, we're right at the cutoff where we would start getting contributions limited, so if we then reduced our MAGI by...

Hi, I want to explain my situation a bit and see what people think about if we should be investing in a Roth or Traditional 401k going forward. My wife & I are both 34 and hoping to FIRE between 45 & 50 with spending around $100-120k/year (basically the max to be at the top of 0% cap gains...

This is the first time I've seen this thread so I read through the whole thing and find it interesting how many people have varying budgets for travel. We're still 10+ years away from FIRE, but I anticipate our travel budget being the largest single item in our budget by far. We travel quite a...

So, I have a similar question as others have asked, but not sure if there is more clarity now that the funds are actually live? I currently have FSTVX (total stock market premium class) in a Roth IRA account with a fee of .015%. What could the potential downside be to sell all the FSTVX and buy...

@pb4uski - Thanks, got it! @audreyh1 - Good point. Thanks! We're still a long ways away from FIRE (34 now, hoping to RE between 45 & 50), so I understand tax laws could change and the current tax laws will be expired by then, etc. I just want to be sure that I understand how it all works now...

Thanks for the replies pointing out the dividend income as well. Makes sense, but that's also tax free (in the lower tax brackets), right? So, I'd actually be withdrawing less, but same end result of actually being able to spend more than the $102k and have it still be tax free: $25k of...

Ok, thanks for your quick response. That's what I thought, but I just wanted to be sure. I've never actually taken money out of any of my accounts so I'm not familiar with that strategy. haha Thanks again!

Hi, I have a similar question to the OP and my plan for FIRE is also very similar (retire no later than 50 and live off a brokerage account until 59 1/2). Let's use a slightly different scenario for what is contributions vs gains: $1m total portofolio $250k are contributions and $750k are...