Hello everyone!
To give some backstory, I am maxing out my 401k, tIRA, and HSA and putting everything left over into a taxable account.
I just discovered that my employer allows for in-service withdrawals so I am considering contributing to my after-tax (non-Roth) 401k over my taxable account going forward.
My question is at what frequency should I do the in-service withdrawal given that there is supposedly a $40 fee to do so.
In case any of this is applicable:
- I am 30 years old
- Portfolio is essentially 100% VTSAX/VFIAX or equivalent
- My 401k provider sends me a single check written to Vanguard (FBO my name) for my Roth IRA that I can deposit via the Vanguard app
- I get paid biweekly and my federal taxable income in 2020 was ~$28k.
- I am expecting this to be slightly higher for 2021 but I should still be in the 12% tax bracket.
Thanks!