Author Topic: Maxed out tax-advantaged accounts for first time ever  (Read 2665 times)

CheapScholar

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Maxed out tax-advantaged accounts for first time ever
« on: July 21, 2017, 11:19:04 AM »
Today was a good day because I used the bonus I received ($11,800 after taxes) to buy $5,500 Roth IRAs for wife and for me.  We usually just maxed out 403b plans at work and considered that "good enough."  Our 403b plans amount to a little over $49,000 per year (us each maxing at 18K plus employer contributions).

So, the Roth accounts this year will get us to over 60K in total retirement investments for 2017.  Feels great.  Truthfully, this might be the only year in my life I hit this milestone.  Not sure my bonus will always be this generous or if I'll stick with this organization many more years.  My goal for FI is still 14 years away (year my son should finish college).  My math says we only need to average about 30K savings per year.  At any rate, I think I'll always look back at 2017 as a year I made some damn smart decisions. 

Mr.GrowingMustache

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #1 on: July 21, 2017, 11:25:49 AM »
Good job!

I hope to hit that one yeat too!

ketchup

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #2 on: July 21, 2017, 11:29:30 AM »
Fantastic!  I won't get there this year, but we should come pretty close next year!

Pigeon

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #3 on: July 21, 2017, 11:56:02 AM »
Awesome!  Well done!

We're going to try to do it this year.  We're very fortunate to each have a 403(b) and I also have a 457(b), and are eligible to contribute $72K total to the three.

Dicey

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #4 on: July 26, 2017, 08:21:49 AM »
Hooray!

For anyone reading who feels discouraged, please let me add this: I was never a very high wage earner and I live in a HCOLA.  Try as I might, I was never able to max out my 401k, but I still managed to FIRE. Just keep at it and the results will surprise you. You may not get there quite as fast CheapScholar, but get there you will!
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rdaneel0

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #5 on: July 29, 2017, 08:34:51 PM »
Awesome!!!! Congratulations :)
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ponyboy

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #6 on: August 04, 2017, 09:28:05 AM »
Thats great.  Ponyboy has been maxing his accounts for the past 9 years...both 401k and roth. 

Babybalrog

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #7 on: August 04, 2017, 09:52:27 AM »
Great Job!
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Dictator_Mars

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #8 on: August 16, 2017, 06:59:23 AM »
Great job, next year for me.

acroy

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #9 on: August 16, 2017, 08:04:48 AM »
Badass!!
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Jtrey17

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #10 on: August 17, 2017, 07:22:14 AM »
Thats great.  Ponyboy has been maxing his accounts for the past 9 years...both 401k and roth.

Are you close to FI? I hope to be fully retired after max retirement funding for 9 years so I'm curious...

sehr

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #11 on: August 17, 2017, 07:32:17 AM »
Congrats! That is a worthy accomplishment.

dcamnc

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #12 on: August 19, 2017, 07:27:22 AM »
Awesome! Great job. I'm eligible for a 457, 401 and an IRA; so I don't think I'll ever be able to max all of those anytime soon ($41,500.00), with my current income.

SunDevilFIRER

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #13 on: September 04, 2017, 10:58:52 AM »
Congrats! That's a huge accomplishment. We have not been able to do that before, though we're trying to this year ($54k for 401k+457, plus $11k for IRAs). Considering you're still 14 years out, this is a big boost for your retirement goals. Let that compounding interest get to work :)
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forgerator

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #14 on: September 04, 2017, 07:05:00 PM »
that is a great accomplishment!

In my family I'm the only bread earner as wife is stay at home mom.

Fortunately my bonus each year allows me to sock away $11k (5500x2) and on top of that I contribute $6000 in HSA and approx $25k (401k + employer contributions) i.e approx $42k in Retirement savings each year. I'm somewhat satisfied , unfortunately apart from that we do live almost paycheck to paycheck which I'm not sure is an ideal situation ...
« Last Edit: September 04, 2017, 07:07:15 PM by forgerator »

Paul der Krake

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #15 on: September 04, 2017, 09:29:34 PM »
that is a great accomplishment!

In my family I'm the only bread earner as wife is stay at home mom.

Fortunately my bonus each year allows me to sock away $11k (5500x2) and on top of that I contribute $6000 in HSA and approx $25k (401k + employer contributions) i.e approx $42k in Retirement savings each year. I'm somewhat satisfied , unfortunately apart from that we do live almost paycheck to paycheck which I'm not sure is an ideal situation ...
It's not paycheck to paycheck if you sock away $42,000/year in retirement accounts. Keep up the good work.

boarder42

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #16 on: September 05, 2017, 02:54:10 PM »
that is a great accomplishment!

In my family I'm the only bread earner as wife is stay at home mom.

Fortunately my bonus each year allows me to sock away $11k (5500x2) and on top of that I contribute $6000 in HSA and approx $25k (401k + employer contributions) i.e approx $42k in Retirement savings each year. I'm somewhat satisfied , unfortunately apart from that we do live almost paycheck to paycheck which I'm not sure is an ideal situation ...
It's not paycheck to paycheck if you sock away $42,000/year in retirement accounts. Keep up the good work.

i like the feeling of living "paycheck to paycheck" when putting away well over 2x what the avg american household makes.  its a fun part of life for me.
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martyconlonontherun

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #17 on: September 11, 2017, 04:45:02 PM »
that is a great accomplishment!

In my family I'm the only bread earner as wife is stay at home mom.

Fortunately my bonus each year allows me to sock away $11k (5500x2) and on top of that I contribute $6000 in HSA and approx $25k (401k + employer contributions) i.e approx $42k in Retirement savings each year. I'm somewhat satisfied , unfortunately apart from that we do live almost paycheck to paycheck which I'm not sure is an ideal situation ...
It's not paycheck to paycheck if you sock away $42,000/year in retirement accounts. Keep up the good work.

Yeah, I've had the internal debate when I basically doubled by 401k contribution and paid down a ton of debt. My conclusion was that I had enough cash to cover minor expenses, if I had bigger expenses I could either 1.) pay with credit card and switch off my 401k for extra cash in 2 weeks from my paycheck or 2) pay immediately by selling stocks from Robin Hood/Coinbase. In conclusion, basically any unexpected expense that comes up now won't cause me to panic or freak out in the way someone is really living paycheck to paycheck. In those scenarios that can't just magically pay themselves an extra $600  in 2 weeks by clicking 0% on a 401k. If anything, it prevents me from impulsively buying something just cause I have money in the bank. Now any big purchases I have to double check that $500 tv on sale might hit between the student loan and the next paycheck. That 5 second check is usually enough for me to decide I dont need the TV.

(I'm also cheating because we have a joint EF but I try to focus only on my finances since I want to be self-supported and my wife has traditionally and diligently done our budgets while I was Mr Spendypants so it becomes a sore subject if I try to kick up our mustachian lifestyle.)

rdaneel0

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Re: Maxed out tax-advantaged accounts for first time ever
« Reply #18 on: September 18, 2017, 07:01:25 PM »
Amazing job! Thanks for posting, I haven't hit this milestone yet and it's really motivating to read stories of other people doing it! Cheers!
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