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rated:
https://www.irs.gov/uac/newsroom/irs-announces-2017-pension-plan-limitations-401k-contribution-limit-remains-unchanged-at-18000-for-2017 

Changes to phase out range.

Max annual addition (Section 415(c)(1)(A)) increased from $53K to $54K for those of us maxing out on backdoor Roth conversions.

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Blah, really wish they would have gone up, even if it was only $500. Good way to add more money to the government's pockets by holding it steady for 2-years now.

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I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

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leedsutd67 said:   I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

18k+9k match+26k roth mega backdoor+ 5.5k roth backdoor+ 20k taxable. I'm 27.

edit: that didn't add up. 26k this year, 27k next year as limit increases

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bppcomplete said:   
leedsutd67 said:   I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

18k+9k match+26k roth mega backdoor+ 5.5k roth backdoor+ 20k taxable. I'm 27.

edit: that didn't add up. 26k this year, 27k next year as limit increases

  
I only contribute the 18k into my 403(b). Can you explain the 26k roth mega backdoor? Do you need self-employment income to do this?

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fearless62 said:   bppcomplete said:   
leedsutd67 said:   I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

18k+9k match+26k roth mega backdoor+ 5.5k roth backdoor+ 20k taxable. I'm 27.

edit: that didn't add up. 26k this year, 27k next year as limit increases

  
I only contribute the 18k into my 403(b). Can you explain the 26k roth mega backdoor? Do you need self-employment income to do this?


This should help:
http://www.madfientist.com/after-tax-contributions/

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fearless62 said:   I only contribute the 18k into my 403(b). Can you explain the 26k roth mega backdoor? Do you need self-employment income to do this?
  You need the plan to allow the option for after-tax contributions .  If your plan doesn't allow it, you're SOL.  You need to review your employer's plan options.

It's like the nonsense with employer-chosen healthcare plans, you're limited to whatever your employer decides you get a choice from and they're the only options you get.  If your employer's plan doesn't allow it, you can't do it unless you change to an employer where the plan allows it.

Edit: removed "(AFAIK these don't come out of your paycheck, you can mail them in / make deposits)".  Unfortunately my employer's plans have never offered the option.  Dunno if it's through payroll deductions or separately on plans that allow it.  I thought I previously found a form to mail in with payment on TIAA's site for after-tax contributions (again not allowed with my plan, though)

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Bend3r said:   
fearless62 said:   I only contribute the 18k into my 403(b). Can you explain the 26k roth mega backdoor? Do you need self-employment income to do this?
  You need the plan to allow the option for after-tax contributions (AFAIK these don't come out of your paycheck, you can mail them in / make deposits).  If your plan doesn't allow it, you're SOL.

It's like the nonsense with employer-chosen healthcare plans, you're limited to whatever your employer decides you get a choice from and they're the only options you get.  If your employer's plan doesn't allow it, you can't do it unless you change to an employer where the plan allows it.

  You also want the ability to do in-service rollovers of those contributions.

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Bend3r said:   
fearless62 said:   I only contribute the 18k into my 403(b). Can you explain the 26k roth mega backdoor? Do you need self-employment income to do this?
  You need the plan to allow the option for after-tax contributions (AFAIK these don't come out of your paycheck, you can mail them in / make deposits).  If your plan doesn't allow it, you're SOL.  You need to review your employer's plan options.
 

  Is this true? In my quick lazy search I couldn't confirm.  In the past I've done it thru payroll. However, it always seems to take a few pay cycles and a few phone calls for them to get it right. I would like the mail in option.  It will also let me fine tune the amount as I get near the max. I will call Fidelity this week. 

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For W2 employees, the funds to start backdoor Roth is payroll deductions.

The norm is you can't get money in (to the 401k as after tax contribution) any other way.

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Is there any article that thoroughly discussed the process of doing a backdoor Roth and the benefits to it? I am still struggling with the idea of maxing out my 401k... I use it to lower my taxable income, otherwise it would only be the minimum to get the match.

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Dus10 said:   Is there any article that thoroughly discussed the process of doing a backdoor Roth and the benefits to it? I am still struggling with the idea of maxing out my 401k... I use it to lower my taxable income, otherwise it would only be the minimum to get the match.
  Remember that backdoor Roth contributions are after tax contributions so they would not lower your taxable income but they would allow that income to grow tax-deferred or tax-free depending on the specifics. It gets pretty complicated depending on how much you have in the account and how much is deductible and such.   Bogleheads has some good info: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA

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talonesi said:   
Bend3r said:   
fearless62 said:   I only contribute the 18k into my 403(b). Can you explain the 26k roth mega backdoor? Do you need self-employment income to do this?
  You need the plan to allow the option for after-tax contributions (AFAIK these don't come out of your paycheck, you can mail them in / make deposits).  If your plan doesn't allow it, you're SOL.  You need to review your employer's plan options.

  Is this true? In my quick lazy search I couldn't confirm.  In the past I've done it thru payroll. However, it always seems to take a few pay cycles and a few phone calls for them to get it right. I would like the mail in option.  It will also let me fine tune the amount as I get near the max. I will call Fidelity this week. 

  All 401k plan features are first subject to IRS regulation. However, some features, while allowed are not required. Employee after-tax contributions are one such feature, as are in-service withdrawals necessary to fully exploit this feature.

Per U.S.code and IRS regulations employee elective deferrals can only be made as deductions from compensation not already received. There is no such requirement for employee after-tax contributions. The plan may allow contributions by payroll deduction and/or cash contribution.

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tennis8363 said:   Blah, really wish they would have gone up, even if it was only $500. Good way to add more money to the government's pockets by holding it steady for 2-years now.
  In other words - Blah, really wish inflation had gone up so I would have more money that would buy less.  

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bppcomplete said:   
leedsutd67 said:   I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

18k+9k match+26k roth mega backdoor+ 5.5k roth backdoor+ 20k taxable. I'm 27.

edit: that didn't add up. 26k this year, 27k next year as limit increases
 

  Damn, nice job. Saving 78.5k at age 27 is impressive. I don't think my wife and I are at that point with our 2 high incomes combined.

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vnuts21 said:   
bppcomplete said:   
leedsutd67 said:   I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

18k+9k match+26k roth mega backdoor+ 5.5k roth backdoor+ 20k taxable. I'm 27.

edit: that didn't add up. 26k this year, 27k next year as limit increases

  Damn, nice job. Saving 78.5k at age 27 is impressive. I don't think my wife and I are at that point with our 2 high incomes combined.

  save 50% when you make 150k ?

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vnuts21 said:   
bppcomplete said:   
leedsutd67 said:   I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

18k+9k match+26k roth mega backdoor+ 5.5k roth backdoor+ 20k taxable. I'm 27.

edit: that didn't add up. 26k this year, 27k next year as limit increases

  Damn, nice job. Saving 78.5k at age 27 is impressive. I don't think my wife and I are at that point with our 2 high incomes combined.

  The 9k match and ability to do a megabackdoor sounds like Google's plan and they are currently paying many 20 somethings 300k plus.

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jhburgess said:   
tennis8363 said:   Blah, really wish they would have gone up, even if it was only $500. Good way to add more money to the government's pockets by holding it steady for 2-years now.
  In other words - Blah, really wish inflation had gone up so I would have more money that would buy less.  

  We are not big consumers, so price increases won't kill us as much as increased retirements limits would help us.

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sfchris said:   
vnuts21 said:   
bppcomplete said:   
leedsutd67 said:   I contribute $18,000 + $6,000 catch up in 401k + Roth IRA for myself and spouse $13,000 per year.How much our you all saving?

18k+9k match+26k roth mega backdoor+ 5.5k roth backdoor+ 20k taxable. I'm 27.

edit: that didn't add up. 26k this year, 27k next year as limit increases

  Damn, nice job. Saving 78.5k at age 27 is impressive. I don't think my wife and I are at that point with our 2 high incomes combined.

  The 9k match and ability to do a megabackdoor sounds like Google's plan and they are currently paying many 20 somethings 300k plus.

  "Damn, nice job" is pretty appropriate then. 

rated:
Fortunate that i'm employed by a fortune 100 company that allows one to put money far in excess of the 401k limitation by I believe an automated spillover into a 401a. I am able to contribute roughly 50k a year into my 401k/401a. Everything above the annual 401k roth limitation I do an in service 401k roth conversion at the end of the year. Wish I knew the logic behind these limitations when there are other sections of the 401 tax code allow one to effectively go far above the 401k annual limits.  My ability to put so much into creditor proof accounts is one of the major factors that keep me working.

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