What should I do with my “extra” cash?

[engineerjourney]

Info:
-   DW & DH with 3 kids
-   Max out both 401k, family HSA, and Roth IRAs yearly
-   Currently have $39k in cash plus $20K in I bonds that will be past the 1 year holding very soon
-   Like to maintain $10k in checking account (gets 3% even before this inflation rise - easy hoops to jump through)
-   Savings account currently earning about 3% as well now (was about 1% before the rate rise)
-   Aim to maintain $30k in emergency fund which should cover 6 months of super bare bones budget

We usually accumulate cash throughout the year then throw it into the Roth IRAs in the beginning of the next year.  I have about $29k of cash to deploy beyond my preferred $10k in checking/$30k in emergency fund (not sure how I feel about double counting the checking $10k though when adding it to the $20k I bonds). 

To throw in a little wrinkle I’m still trying to go part time at my work and they are being pretty frustrating with the details of how many hours it will be so I don’t have a good handle on how much our income will be dropping soon…

My first thoughts were:
-   $13k to max out both 2023 Roth IRAs
-   $10k in I bonds to flush out an emergency fund that is accessible in a year (with the $10k in checking as the backup until then)
-   $6k stay in the savings account getting 3%

Would you do anything differently?  I’m debating just doing the IRAs then holding off on I bonds until I know my part time situation? Should I hold off on doing anything with the cash for now? Current 3% interest in savings without it being locked up for a year might be good enough?  Originally attracted to I bonds as an emergency fund holder but don’t expect them to be a major player in my AA. 

[zolotiyeruki]

Why would your part-time hours affect your decision of whether to contribute to your Roth IRAs?  Is your income high enough that you'll start phasing out of eligibility?

[lutorm]

Why not just put it into index funds instead of in the bank? Once your e-fund needs are met, it seems getting it into the market as soon as possible would be the best? Time in the market, and all that... Or are you anticipating needing the funds in some other way so you don't want to lock them up?

[engineerjourney]

Why would your part-time hours affect your decision of whether to contribute to your Roth IRAs?  Is your income high enough that you'll start phasing out of eligibility?

My only concern is what if I have to go really part time and need more funds, don't want to take money out of the Roth since I can't put it back.  I don't anticipate needing that much though so I should probably just pull the trigger on the Roth contributions. 

Why not just put it into index funds instead of in the bank? Once your e-fund needs are met, it seems getting it into the market as soon as possible would be the best? Time in the market, and all that... Or are you anticipating needing the funds in some other way so you don't want to lock them up?

I'm anticipating an income drop that I dont have any specifics for so putting it all in the market for a potential short-term need goes against my investment policy.  So I was looking at any other options other than leaving it in the savings account until I know the details.   But the savings account is definitely less hassle than any other options if I do need the money... just not as good as CDs or I bonds?

[engineerjourney]

While my income will go down by going part time, I'm also expecting our expenses to go down too but I just dont know how much since its all depends on how part time I go.  How much time I would then have to use to meal plan and shop efficiently vs throwing money at our hectic lives (plus tax reduction).  I think I posted this in a day of worry thinking about if I "lock away" too much cash is that risky when I dont know whats going to happen with our income... hope that makes sense.  Is the higher return worth the "risk" of needing it sooner!

[JJ-]

Fund the ROTHs at the end of the year if you still have cash. You seem to be unsure about how much you'll make so just wait 6 months at minimum before you do something you regret.

Keep the cash in your checking (or churn bank account bonuses) and stop worrying about the small details of an extra ~$400 investing the funds of an 8% year would give you over your 3%.

[Finances_With_Purpose]

I was a little confused at first but now I see what you're getting at.  I would put it in i-bonds.  You can have as much as you want in them and you already have a lot that'll be accessible in a year's time.  There are lots of ways to get creative if needed, but you'll have a huge chunk available soon anyway, so you can just add to the stack.  It's the best return you'll get for money parked for a year or two that you probably won't need. 

[jnw]

Treasury Bills?