Hi all,
I didn't want to create a new post as there is great advice above. I am a new physician intern starting this summer at the UC system making about 54k per year. Like above, the UC offers a mandatory 7.5% DCP pretax and optional 403b, 401a post-tax, and 457.
My situation: Married to higher income earner, married filing separately for loan repayment purposes. Do not qualify for ROTH IRA contributions.
I was just wondering what my general approach would be starting off. My original plan was to start a Traditional IRA, put post-tax contributions in and convert shortly thereafter to a ROTH IRA up to the $5500. My first question is, for CONVERSIONS to a ROTH IRA, is there a limit?
After my HR meeting yesterday, they proposed that I could and/or should go the 401a DCP route and roll it over into a ROTH and that the 403b pretax shelter may not be of much tax benefit given my lower tax bracket at this time. Realistically, I could put 6-7k in addition to the $5500 by December of this year and then contribute the 17500 and 5500 for next year. My question is, should I do the
Mandatory DCP+403b + Trad IRA ->Roth IRA conversion or
Mandatory DCP+Post tax DCP-> ROTH IRA conversion?
On another side note, what are some of the better funds in the fidelity options? Are most doing the Target date funds? I'm looking for more of a 80/20 Asset allocation. The UC balanced fund seems in that ballpark or the UC 2040 pathway, both with ER of .15.
Thanks!
I didn't want to create a new post as there is great advice above. I am a new physician intern starting this summer at the UC system making about 54k per year. Like above, the UC offers a mandatory 7.5% DCP pretax and optional 403b, 401a post-tax, and 457.
My situation: Married to higher income earner, married filing separately for loan repayment purposes. Do not qualify for ROTH IRA contributions.
I was just wondering what my general approach would be starting off. My original plan was to start a Traditional IRA, put post-tax contributions in and convert shortly thereafter to a ROTH IRA up to the $5500. My first question is, for CONVERSIONS to a ROTH IRA, is there a limit?
After my HR meeting yesterday, they proposed that I could and/or should go the 401a DCP route and roll it over into a ROTH and that the 403b pretax shelter may not be of much tax benefit given my lower tax bracket at this time. Realistically, I could put 6-7k in addition to the $5500 by December of this year and then contribute the 17500 and 5500 for next year. My question is, should I do the
Mandatory DCP+403b + Trad IRA ->Roth IRA conversion or
Mandatory DCP+Post tax DCP-> ROTH IRA conversion?
On another side note, what are some of the better funds in the fidelity options? Are most doing the Target date funds? I'm looking for more of a 80/20 Asset allocation. The UC balanced fund seems in that ballpark or the UC 2040 pathway, both with ER of .15.
Thanks!
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