order of contributions, rollovers to 403b/457b/401a/Roth

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order of contributions, rollovers to 403b/457b/401a/Roth

Post by BerkeleyChris » Sun Mar 24, 2013 11:34 am


I have a question about making use of tax advantaged accounts and the best order to make contributions/conversions. As background, I am a university of california employee and max out my 403b and 457b and have just started doing the backdoor Roth in the past 2 years. I have no debt and have a year+ emergency fund. My time to retirement is about 30 years. I would like to begin doing an additional backdoor Roth method, from an aftertax 401A with annual rollover into a Roth IRA. Is this the right order to make contributions and execute rollovers?:

1. Max out 403b and 457b
2. Max 2013 contribution to after-tax traditional IRA (right now my TIRA balance is $0, I rollover every year)
3. Backdoor the 2013 TIRA into a Roth IRA
4. convert 401a pretax account balance (total is around $6k) to traditional IRA (i don't get to make contributions to this, every once in a while my employer puts in very small amounts for some reason)
5. rollover traditional IRA from step 4 into Roth.
6. Max out 401a posttax 2013 contributions
7. Rollover 401a posttax contributions to Roth IRA
8. Contribute to traditional vanguard mutual fund account

I assume i am looking at a tax hit at step 5, but it is probably worth it given the small balance and opportunity to do steps 6 and 7. Does anybody have any thoughts on the tax implications of this plan and the order in which I propose to do it?

Thank you very much for any advice.


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