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I think part of the reason is to avoid poo poo like what's going on with your wife's contributions. This is also consulting so even our least well compensated people can certainly max their 401(k) off of base salary checks without too much difficulty, probably part of it as well.
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Oct 28, 2020 15:36
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2021 income and contribution limits are out, no additional tax advantaged space it looks like. https://www.irs.gov/newsroom/income-ranges-for-determining-ira-eligibility-change-for-2021
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Oct 28, 2020 16:25
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DaveSauce posted:Where does 401(k) spillover post-tax money usually go? Call fidelity on the netbenefits support line (you need to specifically get to your 401k support, it's different from the regular support. Ask about "Roth in plan conversion for after tax dollars." If your plan supports it sign up for it. Your after tax dollars will be converted to Roth dollars and you will never pay taxes on them again. It's called mega backdoor Roth 401k if you want to Google it. Re bonus chat: like all 401ks "it depends". If your employer supports breaking out bonuses from salary deferral then you can. Some don't bother with 401k on bonus, some force it to be identical to regular, and some let you specify it differently. Same with % vs $. It's silly.
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Oct 28, 2020 16:40
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New Vanguard app seems pretty solid. It is not out yet but you can try it with the early access.
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Oct 28, 2020 16:47
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crazypeltast52 posted:2021 income and contribution limits are out, no additional tax advantaged space it looks like. There's an extra $50/individual or $100/family if you've got an HSA! 
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Oct 28, 2020 17:13
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Yond Cassius posted:There's an extra $50/individual or $100/family if you've got an HSA! Hell yea, 1/8th of a checkup! 
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Oct 28, 2020 20:37
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Sundae posted:Hell yea, 1/8th of a checkup! Hey, it's an aspirin and two band-aids in an emergency-room!
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Oct 28, 2020 22:27
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Secure Act 2 is in the works. Doesn't look like there's much that will dramatically affect anything for most of us. It's mostly focused on increasing automatic enrollment. One interesting thing is that they're looking to make student loan payments eligible for an employer match. So you could put your percentage of your 401k payments towards student loans with, I'm assuming, after tax money, and then your employer can put your match into your 401k based on that. Idea being that they want people who would avoid contributing to a 401k due to student loan debt to get the opportunity to get the benefits of having a 401k and putting money aside for retirement.
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Oct 29, 2020 02:24
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acidx posted:Secure Act 2 is in the works. Doesn't look like there's much that will dramatically affect anything for most of us. It's mostly focused on increasing automatic enrollment. One interesting thing is that they're looking to make student loan payments eligible for an employer match. So you could put your percentage of your 401k payments towards student loans with, I'm assuming, after tax money, and then your employer can put your match into your 401k based on that. Idea being that they want people who would avoid contributing to a 401k due to student loan debt to get the opportunity to get the benefits of having a 401k and putting money aside for retirement. What a hosed up way to deal with a crisis in higher education costs and loans. I mean, it sounds pretty good given the fact that we live in the hell world and that's realistically the best we'll get.
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Oct 29, 2020 02:27
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 @ the proposed solution to the student loan crisis being to help those people put more money in the stock market
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Oct 29, 2020 03:04
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My alma mater just announced it's slashing tuition 20% due to a massive drop in enrollment 
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Oct 29, 2020 03:09
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quote:
I can't wait for them to forget to do anything about match vesting and let employers bill their employees for unvested contributions toward their student loans when they leave the company.
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Oct 29, 2020 03:11
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Absolutely wrong thread
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Oct 29, 2020 04:08
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"What's a four-oh-one-kay?" -Most everyone who's burdened by student debt
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Oct 29, 2020 04:25
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withak posted:
The plan isn't to help them put money into the stock market as far as I can tell. It's to let people with student loans use their employers 401k matching for their student loans. They're actually forgoing investing in the stock market for paying off student loans. It's still dumb as hell though. What the government should just do is either forgive the student loans (or at the very least forgive them faster than they are currently and make that forgiven amount non-taxable), reduce the interest on the student loans, and/or reduce the required payments under IBR so that the people holding those loans can invest in their retirement. This proposed solution doesn't do anything to help people who are unable to invest in retirement because they are burdened by student loans. They still have to pay off those student loans. And they won't have any spare money to go toward retirement.
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Oct 29, 2020 14:21
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Am I making a mistake? My company got acquired. The old 401k plan had a .15 expense ratio and the new plan has a .4 expense ratio so rather than rollover balance I opened a Vanguard Rollover IRA (traditional) in my personal account and sent the old 401k there instead. My plan is to enroll that account under their Digital Advisor program alongside my roth IRA.
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Oct 29, 2020 15:02
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spwrozek posted:New Vanguard app seems pretty solid. It is not out yet but you can try it with the early access. I’ll have to look at this. My only gripe with Vanguard is their app and website are both functional, but man do they also kind of suck. I’ll take any improvement. Edit: link for anyone that wants to try it : https://investor.vanguard.com/investing/mobile-apps Edit: can confirm: it is a way better setup. Obviously just can’t do everything the current app does yet. Duckman2008 fucked around with this message at 15:25 on Oct 29, 2020 |
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Oct 29, 2020 15:19
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Razzled posted:Am I making a mistake? My company got acquired. The old 401k plan had a .15 expense ratio and the new plan has a .4 expense ratio so rather than rollover balance I opened a Vanguard Rollover IRA (traditional) in my personal account and sent the old 401k there instead. My plan is to enroll that account under their Digital Advisor program alongside my roth IRA.
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Oct 29, 2020 15:21
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spf3million posted:It's a mistake if you don't already have a traditional IRA and ever plan on doing a backdoor roth in the future. Unless he can roll Trad IRA into an existing 401k which is getting more and more normal. The only mistake is the digital advisor imo. Put it in a target fund and call it a day. Duckman2008 posted:I’ll have to look at this. My only gripe with Vanguard is their app and website are both functional, but man do they also kind of suck. I’ll take any improvement. I also like the setup, it will be interesting to see how the entire functionality gets flushed out. spwrozek fucked around with this message at 15:30 on Oct 29, 2020 |
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Oct 29, 2020 15:27
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spwrozek posted:Unless he can roll Trad IRA into an existing 401k which is getting more and more normal. The only mistake is the digital advisor imo. Put it in a target fund and call it a day. yeah no problem there, the original 401k was on a vanguard target fund so that was part of the reason i decided to put it there since I can just put it back into the vanguard target 2055 fund
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Oct 29, 2020 15:35
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Razzled posted:yeah no problem there, the original 401k was on a vanguard target fund so that was part of the reason i decided to put it there since I can just put it back into the vanguard target 2055 fund
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Oct 29, 2020 16:03
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moana posted:What he's saying is you don't need to pay someone .3% "I don't want my 401k cost to increase by 0.25%, let me move it into something that raises it by 0.30%." I am not accounting for whatever the base rate of the target date fund which might be less than 0.15%. Also don't let this stop you from investing in your 401k. 0.40% is fine. You're talking about $50 dollars per year increase, lots of people have 1% plans which they should still invest in if they exceed the IRA limit. H110Hawk fucked around with this message at 16:15 on Oct 29, 2020 |
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Oct 29, 2020 16:13
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Razzled posted:Am I making a mistake? My company got acquired. The old 401k plan had a .15 expense ratio and the new plan has a .4 expense ratio so rather than rollover balance I opened a Vanguard Rollover IRA (traditional) in my personal account and sent the old 401k there instead. My plan is to enroll that account under their Digital Advisor program alongside my roth IRA. Do you have the option of "do nothing and have multiple 401ks?" As others have pointed out, hurting future backdoor capabilities might not be worth it.
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Oct 29, 2020 16:43
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CubicalSucrose posted:Do you have the option of "do nothing and have multiple 401ks?" As others have pointed out, hurting future backdoor capabilities might not be worth it. if i do nothing it gets converted into a personal ira anyway but on a servicer i dont use personally. and yes for the above i understood the idea behind just investing it directly into the target fund, that is why i put it into my personal vanguard. and yes, i'm not going to stop putting money into the new 401k, i'm just not going to rollover my balance
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Oct 29, 2020 17:38
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Razzled posted:if i do nothing it gets converted into a personal ira anyway but on a servicer i dont use personally. and yes for the above i understood the idea behind just investing it directly into the target fund, that is why i put it into my personal vanguard. But you said: "My plan is to enroll that account under their Digital Advisor program alongside my roth IRA" Why are you paying for digital advisor on a target date fund? it is crazy and a waste of money. That is what everyone is confused about.
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Oct 29, 2020 17:42
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spwrozek posted:But you said: "My plan is to enroll that account under their Digital Advisor program alongside my roth IRA" the plan was to put it under the advisor, but since everyone thinks that's a bad idea i can just put it in the target fund. digital advisor does what it wants, i can't tell it what to invest in
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Oct 29, 2020 17:48
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I'm in my early 30s and student loans having no interest for the last several months has helped me finally finish the things off. Anyway now I need to invest I guess!!! I am a US citizen but live/work abroad, and have since I was in my mid-20s so I basically have nothing paid into social security and no 401k. I do have some savings (which I dipped into to just kill the last of said student loans) but no real investments of any worth. I assumed a Roth IRA would be the best place to start but on some cursory research starting/getting one while working overseas is somewhere between hard and impossible because you need make some magic goldilocks income where you make enough to be over the FEIE and not enough to be ineligible for a Roth IRA itself. There's also a traditional IRA but no one seems to recommend this for anyone so I'm a bit skeptical of why they're so bad... or maybe they're good??? Where do I put money?
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Oct 30, 2020 08:38
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You can't do a trad IRA either if you don't have earned income (or exclude it all). Have you looked into whether it makes sense for you to do the foreign tax credit instead? Or you could open a taxable account. Expat communities will be more likely to have good answers for your specific country and what the rules are.
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Oct 30, 2020 12:57
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Trad IRAs are usually not recommended for most people for some combination of the following reasons: 3) Growth on Roth IRA contributions is effectively untaxed. You may pay a slightly higher marginal tax rate now (since you are likely to make more money now than in retirement), but this is more than made up for by the fact that your money is growing for ~30+ years. 2) Future tax policies at your retirement are uncertain. It's possible/likely that tax rates go up in the future. Most Americans have access to a 401(k), which has the same tax treatment as a trad IRA - money isn't taxed on contribution now, but is taxed on withdrawal in retirement. Locking in relatively low tax rates now for some of your retirement money via a Roth IRA serves as a hedge against changing future tax policies, since most Americans have both a 401(k) and an IRA. Much like anyone else who earns above the theoretical income limit for Roth IRAs, you can do a backdoor conversion of a traditional IRA to a Roth IRA. This is an exceedingly simple process (I fund my traditional IRA annually, then click a button in Vanguard). You will owe ordinary income taxes on the money you contributed to the IRA, so check and make sure this doesn't gently caress with your other expat tax stuff.
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Oct 30, 2020 13:13
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Anyone see the article on high interest savings app, Beam? https://www.google.com/amp/s/www.cnbc.com/amp/2020/10/28/beam-promised-higher-interest-rates-now-customers-want-their-money-back.html After the discussion of HM Bradley in this thread, I opened an account and I’ve put a few bucks in it. Haven’t moved my emergency fund over yet, but this article about Beam has gotten me a little skeptical about HM Bradley I don’t think the same red flags are there like Beam listed 50 bank partners, who when contacted denied having any relationship with Beam. HM Bradley is only affiliated with Hatch bank.
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Oct 30, 2020 17:42
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Baxate posted:Anyone see the article on high interest savings app, Beam? I definitely can see the concern... I feel better about Hatch being a real bank and it being owned by firstrust in Philly. Accounts insured by Hatch. I guess we will see though.
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Oct 30, 2020 18:19
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Baxate posted:Anyone see the article on high interest savings app, Beam? Ah yes, the paypal model of "we're not a bank, good luck" combined with good old fashioned grift. I wonder how much money went into peoples salaries instead of being swept.
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Oct 30, 2020 18:45
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I've got a 401a with TIAA and thought I'd check in on it after a couple years of inattention. I was a little weirded out to see that my rate of return for the year is 0.2%. The economy hasn't been great this year, so is this normal? My 3-year return rate is 6.2% and my 5-year return rate is 7.8%, which seems better, but the rate of return per year fluctuates wildly: +25% in 2019, -10.5% in 2018, +21% in 2017, +8.7% in 2016. Is this a normal swing or is my investment too aggressive? The distribution is 92% equities and 8% real estate, apparently distributed between a variety of funds previously picked by TIAA. They do have target funds; would I be better off switching to that? Sorry for the newbie questions, and thank you. 
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Oct 31, 2020 00:02
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Maybe you’re not keeping up on current events, but
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Oct 31, 2020 00:40
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Velius posted:Maybe you’re not keeping up on current events, but Yes, I figured 0.3% was possibly fine considering the state of the world, but I didn't feel qualified to judge. Thanks!
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Oct 31, 2020 00:51
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I'm up 12.5% but I was a naughty boy and timed the market.
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Oct 31, 2020 00:58
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My employer just added some kind of advisor to our 401k that charges 0.5% of our total balance per quarter. I asked about an in-service rollover to my IRA and apparently that isn't allowed under our plan, so my savings are just stuck I guess?  They sent out an email since apparently I'm not the only one that is pissed: quote:Some of you may have noticed you received an email from REDACTED regarding advisory fees. This is because the Company has retained Twelve Points to assist in the maintenance and running of our 401(k)Plan. While we have been working tirelessly to keep the Company in compliance, while also trying to provide you with the ultimate benefit package compared to other companies our size, we felt we were missing a piece with our 401K. Their financial wellness program is apparently there to advise us on our allocations.....My entire 401K is in a Vanguard target retirement fund so I'm not sure what they are going to advise me on. edit: Also, since we are aparently comparing. I am up ~6.5% for the year, I increased my contributions during the covid crash earlier in the year but am sort of regretting it now. MagicBoots fucked around with this message at 03:55 on Oct 31, 2020 |
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Oct 31, 2020 03:40
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I would absolutely raise hell over that robbery. No sane program manager would add that so they must be getting some kind of kick back.
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Oct 31, 2020 04:14
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MagicBoots posted:edit: Also, since we are aparently comparing. I am up ~6.5% for the year, I increased my contributions during the covid crash earlier in the year but am sort of regretting it now. https://twitter.com/StockCats/status/1274042037185253376?s=20
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Oct 31, 2020 04:17
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MagicBoots posted:My employer just added some kind of advisor to our 401k that charges 0.5% of our total balance per quarter. I asked about an in-service rollover to my IRA and apparently that isn't allowed under our plan, so my savings are just stuck I guess? They're charging you 2% a year for this? That's insane. How much is your company? How are they that far out of compliance? Download their 401k reports from the DOL and see what they were paying.
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Oct 31, 2020 04:25
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