Author Topic: 401k age 50 catch up contributions  (Read 1174 times)

NWOutlier

  • Stubble
  • **
  • Posts: 101
  • Age: 51
  • Location: Seattle Area
401k age 50 catch up contributions
« on: May 26, 2018, 12:58:31 PM »
Hi Everyone,

quick question; I'm 50 this year, I max out my 401k (18500) as pretax.  Since I am 50 this year, I can contribute an additional 6000 dollars...  can i choose that to be in the ROTH portion of my 401k? or do I need to keep it as pretax?

I feel I am a bit light on roth balances between my wife and I, I figured an extra 6k in roth dollars would be good for the next few years.

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1596
Re: 401k age 50 catch up contributions
« Reply #1 on: May 26, 2018, 01:57:02 PM »
You can contribute to both and split the contributions between them any way you want.  The maximum is the aggregate of both.

NWOutlier

  • Stubble
  • **
  • Posts: 101
  • Age: 51
  • Location: Seattle Area
Re: 401k age 50 catch up contributions
« Reply #2 on: May 26, 2018, 02:06:18 PM »
excellent!  I think I will do that... 18,500 pretax, 6000 after tax. 


aboatguy

  • Stubble
  • **
  • Posts: 211
Re: 401k age 50 catch up contributions
« Reply #3 on: May 26, 2018, 10:25:19 PM »
...and you can put an extra 1K in your IRA too

NWOutlier

  • Stubble
  • **
  • Posts: 101
  • Age: 51
  • Location: Seattle Area
Re: 401k age 50 catch up contributions
« Reply #4 on: May 27, 2018, 11:46:13 AM »
Great point; I do put the extra 1k into a roth ira, and fund my wifes roth ira, but all my pretax accounts are growing kinda big... I would preferr more tax free money... so I'll max both roths and add roth dollars to my 401k as well...

now another thing I want is a larger taxable account as well.. so many savings options, so little time :)


NWOutlier - Steve

DavidAnnArbor

  • Handlebar Stache
  • *****
  • Posts: 2211
  • Age: 54
  • Location: Ann Arbor, Michigan
Re: 401k age 50 catch up contributions
« Reply #5 on: May 28, 2018, 05:02:32 PM »
Personally I would max out the pretax savings right now in your life.
There will be time to make the pretax to roth rollovers in the future - at likely a lower marginal tax rate.