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bumping to the top

Hi all, great forum. Learned a lot. Long story short, filing my 2022 taxes and realized due to some unexpected income that we are just over the threshold to contribute to a roth ira. So in 2022, $2,200 of each spouse's 6,000 roth ira contribution was deemed in excess. I was able to recharacterize that portion of the contribution as a traditional IRA contribution. Both accounts lost value in 2022 so the amount that was actually transferred to the traditional IRA by Vanguard's calculations was $1700 (rough loss of $500 from the initial contribution) So here's my question: I don't want to leave the money in the traditional IRA but want to do the least amount of headache to get it out of there i.e. I'm okay with the less optimal tax strategy if...

CyclingDuo wrote: ↑Sat Jan 28, 2023 6:17 am

whatisgood wrote: ↑Sat Jan 28, 2023 5:38 am Bump for my last 2 questions. Any advice appreciated

The White Coat Investor answers your question in this video...

https://www.youtube.com/watch?v=RmzC1tOEzYE

CyclingDuo

Thanks - exactly what I was looking for

Bump for my last 2 questions. Any advice appreciated

Thanks all for the feedback confirming what I was thinking. Quick followup question about contribution limits. I've used 401A accounts in the past but that has come exclusively from my employer contributing but with this ORP I will be contributing 7% and university will be contributing 7%. Does my 7% 401A employee contribution affect what I can contribute to my 457B or 403B? My plan would be if it does not to: 1. do ORP and contribute employee 7% of salary to 401A (approximately 5-10K), capture employer match (approximately 5-10K) 2. Contribute 22,500 to 403B 3. Contribute 22,500 to 457B I think that would be allowed but just wanted to check with all of you who would likely know better than HR. I'll confirm with HR but I've found boglehead...

Here are the details on the 2 options which I need to make a binding decision on within 30 days of starting employment: ORP Mandatory 7% Employee Contribution Employer 7% Matching Contribution Low cost index funds available Need to confirm my situation but appears I would vest immediately for both employee and employer contributions AZ State Pension - link to AZ plan here https://www.azasrs.gov/content/estimate-your-benefits Mandatory 12.71% Employee Contribution Employer Matches 12% Contribution but those contributions do not vest if I leave for any reason other than position being eliminated which does not seem likely Full Retirement benefit at age 62 + 10 years of service or age 65 No control over investment selection Working less than ...

Thanks all for the feedback confirming what I was thinking. Quick followup question about contribution limits. I've used 401A accounts in the past but that has come exclusively from my employer contributing but with this ORP I will be contributing 7% and university will be contributing 7%. Does my 7% 401A employee contribution affect what I can contribute to my 457B or 403B? My plan would be if it does not to: 1. do ORP and contribute employee 7% of salary to 401A (approximately 5-10K), capture employer match (approximately 5-10K) 2. Contribute 22,500 to 403B 3. Contribute 22,500 to 457B I think that would be allowed but just wanted to check with all of you who would likely know better than HR. I'll confirm with HR but I've found bogleheads...

sailaway wrote: ↑Tue Jan 24, 2023 9:58 am ORP, considering the short time you expect to contribute to the plan.

Do you also have access to a 457 for additional tax sheltering?

Yes, I do have access to the 457B as well. Plan is to max the 457B and the 403B in addition to the primary retirement options described here.

Thanks for the reply

Hi all, Love this forum and really appreciate the advice I have gotten here. About to start a new job with the state of Arizona and am having a hard time deciding on whether to opt into the ORP plan or the state pension. Here are the particulars for me: - Don't plan on being at this job more than 5 years and will likely not continue to work for the state of Arizona (work remote in another state) -Age late 30's and well on track to FI already (70% or so traditional retirment accounts 30% Roth), Salary in low 6 figures - In addition to whatever I choose below, I plan to max out the 403B and 457b options available there with low cost index funds and my significant other does the same with their 403B Here are the details on the 2 options which ...

Thanks everyone for the responses - guess I was wrong about what I have at the hospital because the retirement guy from HR said the 457 can be rolled into an ira, solo 401K or my next work's 401K.

Again thanks for the time in responding but feel good about my options now and glad I don't have to do what I was originally proposing

HI everyone - love this forum - have gotten a ton of actionable advice from it. My brother (also a boglehead fan) listened to me on the phone today describe this and said sounds good to me but post it on bogleheads and see what a bunch of smart people have to say. So here's the situation. Currently, work at a hospital where I have access to 457B non-governmental which I have contributed to for 9 years so a 6 figure balance but also work at a university doing adjunct work where I have contributed to a 403B in the past. I have not maxed either account out this year. Just accepted a new job where I will only have access to a 401K which I will start in July. I would like to roll over the hospital non-governmental 457B into another retirement pl...