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  • jfoxcpacfp
    replied


    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.

    Leave a comment:


  • Joseph
    replied


    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.

     

    Leave a comment:


  • The White Coat Investor
    replied













    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.

    Leave a comment:


  • lakelife
    replied










    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?

    Leave a comment:


  • PHANTASOS
    replied
    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.

    Leave a comment:


  • JKG
    replied
    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)

    Leave a comment:


  • conniebird
    replied
    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.

    Leave a comment:


  • The White Coat Investor
    replied







    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.

    Leave a comment:


  • dragonfruit
    replied
    Husband is PGY2 and we are dual-income with two kids.

    1. 403b up to employer match

    2. Both our Roth IRAs to the limit ($11,000)

    3. HSA to the limit ($6,500 per family)

    4. 529 to the state tax limit ($2,000 per kid)

    5. Coverdell (i.e. ESA) to the limit ($2,000 per kid)

    6. Back to 403b as we can spare

    Leave a comment:


  • jfoxcpacfp
    replied




    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.

    Leave a comment:


  • Joseph
    replied
    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.

    Leave a comment:


  • jfoxcpacfp
    replied




    Coming out of paycheck spread out evenly all year (max):

    1a HSA

    1b 401k

    1c 457

    1d Dependent care FSA (not retirement, obviously, but tax advantaged)

     

    2. Traditional IRAs we buy increments of  $1000 or $500 throughout the year until convert in December

    3. 529s funded in October. No state tax benefit (no state tax, free money)

    4. Kids’ Roths in December.

    5. Taxable account at end of year.
    Click to expand...


    Curious about your backdoor Roth conversion. If you are contributing to a TIRA all year, then you have to pro-rate when it's time to convert and the account may even be down. Why not contribute to a taxable account all year then move $5,500 to your TIRA before converting to a BDR a few days later? Gains/losses in a non-deductible TIRA are inferior to same in a taxable account. Just wondering...

    Leave a comment:


  • JKG
    replied
    1. Back door Roth in January for both of us (maximum contribution)

    2. Max out each 401k, 403b, and 457b account evenly over each paycheck

    3. Nominal amount in FSA for dentist, opthalmology, prescriptions, etc. No HSA available, no 529 needed.

    4. Taxable accounts monthly based on cash flow

    Leave a comment:


  • JKG
    replied
    Back door Roth IRAs on January 1.

    Max out our 401k, 403b, 457b accounts throughout the year.

    Nominal amount in a FSA to cover opthalmology, dentist, prescriptions, etc. No HSA available. No 529 plans needed.

    Taxable account throughout the year depending on cash flow.

    Leave a comment:


  • JKG
    replied
    Back door Roth IRA for both of us on January 1, then our 401k, 403b, and 457b accounts maxed out evenly over each pay pay period. We also have a nominal amount in a FSA spread out over the year also to cover ophthalmology and dental visits, prescriptions, etc. Thankfully no major medical issues for us. There is no HSA available for us unfortunately. We have no need for 529 plans. Taxable accounts each month depending on cash flow.

    Leave a comment:

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