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  • #16
    Don't really have an order:

     

    1. 403b (bimonthly check, over the year + generous company match)

    2. Back-door Roth - try to fund this within first quarter of the year

    3. Have not started a taxable yet but planning to soon and will likely do monthly contributions

     

    I'm not eligible for an HSA.

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    • #17
      1. Max out Back door Roth IRA for both of us in January
      2. Max out 401k, 403b,457b accounts evenly throughout the year
      3. Nominal amount in a FSA throughout the year to pay deductibles, dentist, etc. No HSA unfortunately. No need for college funds though. (529 plans)

      4. Taxable accounts throughout the year depending on cash flow.

      (Sorry this post showed up 4x! Hopefully theses glitches are fixed now)

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      • #18
        1.  On January 1st, we contribute to a non-deductible traditional IRA x2, and 529 up to state tax deduction for each child.  We usually convert to Roth about a week or two later.

        2.  We have been contributing to my profit sharing plan and our taxable accounts evenly throughout the year.

        3.  Wife's 401k (actually TSP) is evenly contributed to throughout the year, which is necessary to maximize her employer match.

        4.  We have purchased the maximum allotment of series I and series EE savings bonds for the last few years.  I now have access to a cash balance plan at work, so I probably will not continue to do this going forward.  The cash balance plan is not very flexible with contributions - if I needed to save less in a given year I would need to contribute less to my profit sharing plan (since the cash balance plan contribution can't be changed from year to year).  If the fixed rate for series I savings bonds goes up we may still buy - or we may cash in our 0% fixed rate series I savings bonds to purchase new higher rate ones.  We like having our emergency fund in series I savings bonds.  I think it is unlikely we will purchase series EE savings bonds going forward.

        Don't have a HDHP, so no HSA.

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        • #19










          Johanna,

          It is just a personal feel that I want the money in a Traditional IRA for a longer period than just a one-day flip.  It is easier for my wife and I to see and keep that money earmarked in that way as well.
          Click to expand…


          Ahhh, I see.
          Click to expand…


          Seems like a big hassle for the step doctrine that has never, to my knowledge, been enforced on a backdoor Roth IRA. But to each his own.
          Click to expand...


          First year contributing backdoor...is it a big hassle to move money some at a time. Wanted to get in a habit of automatic drafting it but seems lump sum is easier?

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          • #20













            Johanna,

            It is just a personal feel that I want the money in a Traditional IRA for a longer period than just a one-day flip.  It is easier for my wife and I to see and keep that money earmarked in that way as well.
            Click to expand…


            Ahhh, I see.
            Click to expand…


            Seems like a big hassle for the step doctrine that has never, to my knowledge, been enforced on a backdoor Roth IRA. But to each his own.
            Click to expand…


            First year contributing backdoor…is it a big hassle to move money some at a time. Wanted to get in a habit of automatic drafting it but seems lump sum is easier?
            Click to expand...


            Lump sum definitely easier.
            Helping those who wear the white coat get a fair shake on Wall Street since 2011

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            • #21


              is it a big hassle to move money some at a time.
              Click to expand...


              Not at all.

              It is actually an enjoyable process to chip away at the contribution limit.

               

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              • #22


                White Coat Investor wrote: Johanna Turner wrote: Joseph wrote: Johanna, It is just a personal feel that I want the money in a Traditional IRA for a longer period than just a one-day flip.  It is easier for my wife and I to see and keep that money earmarked in that way as well. Click to expand… Ahhh, I see. Click to expand… Seems like a big hassle for the step doctrine that has never, to my knowledge, been enforced on a backdoor Roth IRA. But to each his own. Click to expand… First year contributing backdoor…is it a big hassle to move money some at a time. Wanted to get in a habit of automatic drafting it but seems lump sum is easier?
                Click to expand...


                Generally, dollar-cost averaging is a good thing (except with a huge lump sum, say 6 figures). For a backdoor, the opposite is true because you have multiple transactions. If you want to dollar-cost average for your back-door, it would be easier to DCA into a taxable account then lump-sum into a backdoor. I don't recommend you DCA into your nondeductible IRA because you will have gains or losses that must remain with the ND IRA and gains come out as ordinary income.
                Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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