WCI #372: Solo 401(k), TSP, Employer Match and Converting from Pre-tax to Roth Questions
Jun 20, 2024
In this episode, they discuss recent changes with Vanguard in solo 401(k), contributing to both a solo 401(k) and TSP in the military, concerns about losing a non-governmental 457b, inherited IRA management, and converting from pre-tax to Roth. The episode also includes a sponsorship message from SoFi offering financial services for medical professionals.
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volunteer_activism ADVICE
Choose Customized Solo 401(k) Plans
Consider using a customized Solo 401(k), which offers more features and Roth options than Vanguard's plan.
Paying a setup fee of about $500 and annual fees around $150 can be worth the added flexibility and service.
volunteer_activism ADVICE
Multiple 401(k) Contributions Allowed
You can contribute to multiple 401(k)s, including a Solo 401(k) and a TSP, but employee contributions count towards one $23,000 annual limit.
Employer and after-tax contributions can be made to each plan up to the overall $69,000 limit.
volunteer_activism ADVICE
Unvested 401(k) Match Loss
Leaving a job before your 401(k) match is vested means you lose not just their contribution but also any gains on it.
Vesting schedules can complicate 401(k) benefits and discourage participation but are designed to retain employees.
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Today we are answering your questions about retirement accounts. We start out by addressing the recent change with Vanguard getting out of the solo 401(k) game. Then we talk about if you can contribute to both a solo 401(k) and the TSP if you are in the military, we discuss 401(k) employer matching, concerns around losing a non-governmental 457b, what to do with an inherited IRA, and converting from pretax to Roth.
Did you know that the White Coat Investor not only has a podcast and a blog but several books that will help you on your way to financial independence. These books cover topics such as asset protection and minimizing your taxes to keep more of your hard earned money. They discuss plans for insurance, housing, spending, student loan elimination, investing and estate planning. You can learn how to become a millionaire within 5-10 years of leaving residency and how to invest in a sensible low cost and effective manner with or without the assistance of a financial advisor. There is even a book geared directly toward medical and dental students so you can start optimizing your finances early in your professional journey. Find the book that is right for you at the WCI store at https://www.shop.whitecoatinvestor.com or on Amazon. You can do this and The White Coat Investor can help.
The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!
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