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  • #16
    Although you are correct that UC does allow in-service conversions of after-tax contributions to your 401a, beware that not all Fidelity reps are aware of how to do this. Just call back and get another person if that is the case. You can decide how frequently do make this conversion but every month is probably more of a hassle than it is worth.

    If you search the Boglehead's forum about the UC retirement plans you will find some good information.

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    • #17
      Thanks, my reasoning for doing the monthly was just to avoid the taxes on growth. Is there an easy way to track the taxes I would owe on that growth if I were to let it sit in the 401a prior to conversion?

       

      Also the conversion would be to the ROTH IRA from the 401a.

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      • #18
        Well, you o




        Thanks, my reasoning for doing the monthly was just to avoid the taxes on growth. Is there an easy way to track the taxes I would owe on that growth if I were to let it sit in the 401a prior to conversion?

        Also the conversion would be to the ROTH IRA from the 401a.
        Click to expand...


        Well, you originally said (post #21985) that you would be converting from a TIRA, hence my comment.

        Why do you need to "track taxes would owe on the growth"? When you convert, just subtract your basis from the total amount converted and then multiply by your marginal tax rate. There may be no growth, you realize - never a guarantee in the short term. If it were me and it really mattered that much, I'd convert monthly after the contribution.
        Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #19
          Thanks sorry for the confusion.  I would do the TIRA if I ended up making contributions to the pre-tax accounts, but I'm leaning more towards just doing the post-tax DCP and rolling everything into the Roth.

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          • #20




            Thanks sorry for the confusion.  I would do the TIRA if I ended up making contributions to the pre-tax accounts, but I’m leaning more towards just doing the post-tax DCP and rolling everything into the Roth.
            Click to expand...


            That's not a problem, you'll be learning this stuff for the rest of your life. At your (assumed) low tax bracket, that makes more sense.
            Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #21
              update: so after long thinking and talks with wife's advisor, I have decided to prioritize my student loans. After my required dcp contribution, I make $3700 per month. As my wife supports us on her salary, I will be putting $2700 to my loans every month and saving the $1000 in either a short term savings vs. bonds that would be easily accessible with the goal being saving for a house and fund yearly vacations. By the end of residency $97k will be paid off.

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              • #22
                I was reading this thread and wondering about the loan payment option. Many residents don't have a spouse making enough money to aggressively pay down loans, so I think it's good to take advantage of this situation (but admittedly I don't know much about The recent repayment developments as they started just as I was finishing residency). The UC retirement is tempting though! My spouse (not a doc) works for UC and we are steadily taking advantage of more and more of the benefits.

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