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livesoft wrote: ↑Tue Jan 24, 2023 6:35 pm

Enjoyingthemiddle wrote: ↑Tue Jan 24, 2023 6:23 pm Thank you for the reply. We opened Roths three years ago and maxed them the first two years. We did not contribute to them last year. Need to look into the back door option. I do not believe either of our plans allow for mega back door.

You have until April 2023 to make your 2022 IRA contributions.

Thank you!

sailaway wrote: ↑Tue Jan 24, 2023 6:34 pm

Enjoyingthemiddle wrote: ↑Tue Jan 24, 2023 6:30 pm

Jack FFR1846 wrote: ↑Tue Jan 24, 2023 6:28 pm Something little to consider is to overpay federal income taxes (you want to with RSUs anyways) to be at least $5k over. Then take the $5k refund as paper iBonds.

Thank you for the iBonds suggestion. Can you explain more about why to overpay when it comes to RSUs? We’re new to this.

You will actually likely be fine at your income level. However, RSUs are generally withheld like bonuses at a flat supplemental rate of 22% for federal. If your marginal rate is higher than that, this can result in a shortfall. The more RSUs and bonuses, the bigger the shortfall. If your marginal rate is less than 22%, you end up with a big refund.

Ok good to know. I expect my husbands income will continue to increase over the next few years.

Jack FFR1846 wrote: ↑Tue Jan 24, 2023 6:28 pm Something little to consider is to overpay federal income taxes (you want to with RSUs anyways) to be at least $5k over. Then take the $5k refund as paper iBonds.

Thank you for the iBonds suggestion. Can you explain more about why to overpay when it comes to RSUs? We’re new to this.

If you don't have tIRA accounts, you might want to consider backdoor Roth contributions. And/or, look at each of your 401k plans to see if they allow non Roth after tax contributions and either in plan conversion to Roth or in service rollovers that would allow you to move the money to a Roth IRA. This process is known as the mega backdoor Roth. Whether or not any of this reaches your goals sooner depends on what you are invested in how those investments do over the next 13 - 18 years. At the end of 2021 we were so close to our stretch goal that contributions would be enough to put us over the top. Instead, even with contributions we have slipped backwards a bit. On the other hand, if you can keep your jobs through your planned time period...

OP, 1) At your income level, it is a no-brainer to max up your Trad 401K and Roth IRAs. Then, you can use the Roth IRAs' contribution to pay for your daughter's college education. "Our home will be paid off in less than 13 years and is at 2.625%." 2) What is the point of paying off the house and then take a more expensive student loan for your daughter? 3) Cash out your RSU when it is vested. 4) At your income level, there is no reason why you cannot do (1) and spend enough. If you do not do (1), you would be paying a lot of taxes for your additional expenses. 5) Do you plan to pay for your daughter's college education? 6) 401Ks and IRAs are not retirement accounts. They are tax-advantaged accounts. You can get the money out tax-...

My husband and I have increased our income quite a bit in the last year or so. Can anyone help me calculate our retirement using these new parameters? Husband: 136K plus 50K RSUs Contributing 12% to 401K plus 3% match Me: 78K Contributing 10% to 401K plus 8% match We aren’t sure what we’ll do with the RSUs when they vest at the end of the year, I was thinking maybe we sell them and move the money into a brokerage account earmarked for additional retirement savings. Our home will be paid off in less than 13 years and is at 2.625%. We have 40K in an emergency fund. Current retirement balance is 300K. Back when we made 175K combined my goal was to save 40K per year and retire in our mid 50s with 3M and a paid off house. I’m trying to get an id...

Enjoyingthemiddle , welcome to the forum. On the W-2 it shows up in box 14 Other and states “DEFRD XXXXX.XX” (the Xs represent the amount of the pay out). Does the amount in Box 1 include the amount in Box 14? I’d like to complete our own taxes in TurboTax as I typically do. When I import his W-2 it calls out this box and asks for a description and I’m unsure of what this should be. If it was a "Deferred Comp payout" just put that in Box 14 as a description, then the amount in the next Box 14 box, and Other (not classified) in the Category box. Also, is there anything else I need to do in addition to this when filing? Was the Deferred Comp considered a qualified or non-qualified plan? Thank you for the welcome! The amount in box ...

Good morning,

Due to an acquisition my husbands employer paid out funds from a deferred compensation plan in 2022. The funds were not yet vested, however they made the decision to pay out all funds regardless. On the W-2 it shows up in box 14 Other and states “DEFRD XXXXX.XX” (the Xs represent the amount of the pay out).

I’d like to complete our own taxes in TurboTax as I typically do. When I import his W-2 it calls out this box and asks for a description and I’m unsure of what this should be. Also, is there anything else I need to do in addition to this when filing?

Please let me know if more information is needed to fully understand the situation. Thanks in advance for any insight!