I've been maxing out my after-tax 401(k) and converting it to a Roth for 2 years - is this a good strategy?
Briefly

from 24/7 Wall St.2 months ago
The 401(k) retirement program, initiated in the late-1970s, has allowed 71 million workers to save a significant $8 trillion for their retirement, underlining its importance in ensuring a comfortable post-employment lifestyle.
24/7 Wall St.https://247wallst.com/personal-finance/2024/12/27/ive-been-maxing-out-my-after-tax-401k-and-converting-it-to-a-roth-for-2-years-is-this-a-good-strategy/
High wage earners can more easily reach the $23,000 contribution limit of a 401(k), yet many feel it is insufficient, influencing the exploration of alternative investment strategies like mega backdoor Roth conversions.
24/7 Wall St.https://247wallst.com/personal-finance/2024/12/27/ive-been-maxing-out-my-after-tax-401k-and-converting-it-to-a-roth-for-2-years-is-this-a-good-strategy/
Mega backdoor Roth conversions enable workers to exceed the standard 401(k) limits by making after-tax contributions, rolling them into a Roth IRA or Roth 401(k), which offers tax advantages for retirement.
24/7 Wall St.https://247wallst.com/personal-finance/2024/12/27/ive-been-maxing-out-my-after-tax-401k-and-converting-it-to-a-roth-for-2-years-is-this-a-good-strategy/
While exploring the option of putting excess cash into a traditional brokerage account, considerations regarding flexibility in fund usage and investment opportunities such as real estate become significant for workers.
24/7 Wall St.https://247wallst.com/personal-finance/2024/12/27/ive-been-maxing-out-my-after-tax-401k-and-converting-it-to-a-roth-for-2-years-is-this-a-good-strategy/
Read at 24/7 Wall St.
#401k #retirement-planning #mega-backdoor-roth #investment-strategies #financial-independence
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