Remember, it doesn't have to be perfect, just effective. In my suggestions, I was willing to compromise on some allocations (for example, I am not too careful about whether you end up with this percent or that percent of SCV, or whether it can be directly rebalanced with any other funds, rather I favor the ability to have a meaningful amount of a single fund in a single account whenever possible and because at some point it really isn't worth the complexity).
Also, I'm sorry to tag this on as an afterthought, but the following occurred to me:
Since you are maxing your 401k, I would look into whether you can make 401k "after-tax contributions" (not the same as 401k Roth contributions which are also after-tax). With 401k after-tax contributions, you pay taxes upfront (like a Roth) without it affecting the total allowable personal contributions between your tax-deferred and Roth 401k options. After-tax contribution earnings are tax-deferred, but not tax-free. If your plan allows regular in-service rollovers of after-tax contributions (at least annually),
they can be moved into your Roth IRA (your earnings get taxed when rolled over, which is why you must
be perform regular rollovers). This way you'd dramatically expand your tax-free/RMD-free Roth space beyond your the Roth IRA contributions, because the rollover is thereafter treated as Roth assets.
Your 401k Tax-Deferred Savings Plan Document would probably have this information. I assume it would have sections that are labeled, for example, "Pre-Tax Contributions", then "Roth 401k Contributions", then "Catchup Contributions" and then "After-Tax Contributions". It might say something similar to this:
401k After-Tax Contributions perhaps wrote:In addition to your pre-tax and/or Roth 401(k) contributions, the Plan accepts after-tax contributions...After-tax contributions will be held in a separate after-tax contribution account established on your behalf and will be invested in accordance with your investment directives...
You might have to look deeper for another section concerning "In-Service Withdrawls" or something of the sort. You'll look for text stating something like:
In-Service Withdrawls perhaps wrote:...You may withdraw all or a portion of your after-tax contribution and rollover contributions plus earnings at any time. In-service withdrawals can be requested by accessing the Plan's website...or through the Plan Information Line at...
Please note that I am quoting a random 401k document I found on the web, as I do not personally have this option.
Regular rollovers of 401k after-tax contribution are preferable to putting those contributions in a taxable account. If you cannot make regular rollovers into your Roth IRA, I wouldn't bother with 401k after-tax contributions.
If regular rollovers of 401k after-tax contribution exist in your plan, there is a $50,000 limit of combined contributions:
Match + Personal Tax-Deferred/Roth 401k Contributions + 401k After-Tax Contributions
Once you max out a 401k after-tax option, a taxable account is fine for investing additional savings.
If you can do regular rollovers of 401k after-tax contributions, you could put $20,000/yr there instead of placing it into your taxable account. Doing so means you pay a negligible amount of taxes on earnings when rolling the money out and that money can be rolled into a Roth IRA directly (not to a TIRA
) which dramatically expands your Roth space and improves tax efficiency and portfolio flexibility.