| L 401K: J 401K: L rIRA: J rIRA: L HSA: J HSA: Brokerage: Total: | $50,000 (Mega Backdoor Roth w/ employer match) $20,000 (w/ employer match) $6,000 $6,000 $3,500 (w/ employer match) $3,500 (w/ employer match) $20,000 $109,000 |
| Roth IRA 2018 Roth IRA 2019 457b Pension contributions Pension employer contributions Cash Total: | $5,500 (haven't contributed yet) $6,000 $19,000 $4,050 $9,558 $6,000 $50,108 |
| HSA $416 / $4000 HSA Match $1000 / $2000 401K Pre Tax $1466 / $19000 401K Pre Tax Match $733 / $9500 Roth IRA $500 / $6000 Mortgage Principal $800 / $9600 Taxable Account $4403 / $15000 |
2019 Goals (for couple): $130k; $149k including normal debt paydown.
As of 1/31/2019
401k: 1565 / $19000
401k match: 1501 / $16000
SIMPLE IRA: 770 / $13000
SIMPLE Match: 206 / $3000
HSA: 529 / $5500
HSA Match: 1500 / $1500
Backdoor Roth IRA: 6000 / $6000
Mega Backdoor Roth: 1203 / $16000
I Bonds: 10000 / $10000
Taxable Brokerage: (12900) / $20800
529 #1: 550 / $6600
529 #2: 550 / $6600
Extra Mortgage Principal: 500 / $6000
Total: $11974 / $130000
Regular mortgage principal and low-interest college debt principal paydown: 1520 / $19000
Negative number for taxable brokerage is due to withdrawing a chunk to fund the I bonds and Backdoor Roth. With a nasty income tax bill coming due, and looming kitchen expenses, it's going to be an uphill fight to make our goals! I did get a bigger raise than anticipated - due to very low expectations stemming from a minuscule corporate raise pool - which should help some.
Your 401K match makes me drool. It is over 3X my company match.
I'm in again too as a single.
YTD / Goal
401(k) $1,584 / $19,000
401(k) match $285 / $3,420
Roth IRA $0 / $6,000
Taxable $1,000 / $19,580
Cash $1,000 / $12,000
Total $3,869 / $60,000
6.45% to goal
| Account L 401K: J 401K: L rIRA: J rIRA: L HSA: J HSA: Brokerage: Total: | Goal $50,000 $20,000 $6,000 $6,000 $3,500 $3,500 $20,000 $109,000 | January $4,086 $1,634 $2,000 $0 $750 $42.34 $0 $8,514 | February $4,086 $1,634 $1,500 $0 $250 $278.46 $0 $7,750 | Total $8,172 $3,268 $3,500 $0 $1,000 $321 $0 $16,264 | % Complete 16.3% 16.3% 58.3% 0% 29.6% 9.2% 0% 15.0% |
| Account L 401K: J 401K: L rIRA: J rIRA: L HSA: J HSA: Brokerage: Total: | Goal $50,000 $20,000 $6,000 $6,000 $3,500 $3,500 $20,000 $109,000 | January $4,086 $1,634 $2,000 $0 $750 $42.34 $0 $8,514 | February $4,086 $1,634 $1,500 $0 $250 $278.46 $0 $7,750 | Total $8,172 $3,268 $3,500 $0 $1,000 $321 $0 $16,264 | % Complete 16.3% 16.3% 58.3% 0% 29.6% 9.2% 0% 15.0% |
I'll do my best. Single income but I also have three dependents.
Goal is to save $55k in 2019 (not including employer match which isn't much).
401k - $19,000
IRA - $6,000
Wife's IRA - $6,000
HSA - $6,900
Taxable account - $15,000
Crypto - $2,100
This is a stretch goal.
Eh, took an epic pay cut last year - MUCH happier!
That said, here's our CY19 household savings goals even if it doesn't rise to the stated levels.
TSP $19,000
457 $25,000
Pension $8,470
TOTAL $52,470
Eh, took an epic pay cut last year - MUCH happier!
That said, here's our CY19 household savings goals even if it doesn't rise to the stated levels.
TSP $19,000
457 $25,000
Pension $8,470
TOTAL $52,470
Epic pay cut last year; just accepted yet another new gig as of April 1 bringing my salary back up, so new goals for CY19 in order:
TSP $19,000
457 $25,000
Pension $13,000
Invest $22,800
ROTH $7,000
TOTAL $86,800
That is one hell of a 401k match.
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| Account L 401K: J 401K: L rIRA: J rIRA: L HSA: J HSA: Brokerage: Total: | Goal $50,000 $20,000 $6,000 $6,000 $3,500 $3,500 $20,000 $109,000 | January $4,086 $1,634 $2,000 $0 $750 $42.34 $0 $8,514 | February $4,086 $1,634 $1,500 $0 $250 $278.46 $0 $7,750 | March $9,919 $1,634 $2,500 $6,000 $250 $398 $0 $20,476 | Total $18,091 $4,902 $6,000 $6,000 $1,250 $719 $0 $36,740 | % Complete 36.2% 24.5% 100% 100% 35.7% 20.5% 0% 33.7% |
i'm confused as to how many ppl here have HSAs
dont you need high deductible health insurance to qualify for HSA?
i'm confused as to how many ppl here have HSAs
dont you need high deductible health insurance to qualify for HSA?
Yep. Mustachians tend to be younger demographic, which benefit most from HDHPs. I had a great work plan with great coverage, very small deductible. I specifically asked to be moved to a "worse" plan with a higher deductible in order to be eligible for HSA.
I'm in this year! I'm part of a couple but only tracking my savings for this challenge.
Goals:
Roth IRA 2018
Roth IRA 2019
457b
Pension contributions
Pension employer contributions
Cash
Total:$5,500 (haven't contributed yet)
$6,000
$19,000
$4,050
$9,558
$6,000
$50,108
| Bucket: Roth IRA 2018 Roth IRA 2019 457b Pension contributions Pension employer contributions Cash Total: Progress: | Goal: $5,500 $6,000 $19,000 $4,050 $9,558 $6,000 $50,108 100% | Q1 $5,500 $5,500 $100 $1000 $2500 $0 $14,600 29.2% |
Checking in for April. We've technically hit 'our numbers' for FIRE at this point (if using a 4% withdrawal rate). Plan so far is to see how things go until the end of the year and reevaluate. We'd rather be a bit more conservative given the high values of the stock market right now.What is the reasoning for prioritizing post-tax 401k over pre-tax?
HSA $1667 / $5000
HSA Match $500 / $2000
401K After Tax $26990 / $29558
401K Employer Match $2767 / $7405
401K Pre Tax $0 / $19000
Roth IRA $1921 / $6000
Wife Roth IRA $1921 / $6000
Mortgage Principal $3034 / $9240
Windfall $16900 / $16900
Wife 401K $4058 / $13056
Wife 401K Match $300 / $979
Total: $60057 / $115139 (52.1%)
2019 Goals vs. April UpdateWith these savings numbers you must be moving at crazy pace. How many more years til FI?
$ 19,000 / $ 6,307 -- 401k Mrs
$ 8,000 / $ 4,223 -- 401k Match - won't change again until July
$ 19,000 / $ 8,541 -- 401k Mr
$ 5,500 / $ 7,982 -- 401k Match Mr - includes profit sharing of $5k (Mar '19)
$ 5,230 / $ 1,600 -- HSA Mrs - includes some employer contributions
$ 1,770 / $ 865 -- HSA Mr - includes some employer contributions
$ 75,000 / $49,200 -- Taxable Investments
$ 6,000 / $ 2,000 -- Other Savings
$ 35,000 / $16,500 -- Extra Principal Payments
$174,500/ $97,220 -- 56%
What is the reasoning for prioritizing post-tax 401k over pre-tax?
The main reason we max out our after tax 401k first is because then I roll it over to my Roth IRA using the mega-backdoor trick. I like to do this earlier in the year because there's a 5 year waiting period before I can withdraw the money from the Roth. If I first did the 401k pre-tax, then the after-tax, by the time the last deposit went into the after tax 401k it would be January of next year, meaning I'd have to wait an extra year to withdraw it from my Roth. I guess I could do several mega-backdoor conversions per year, but each time I do, it's a $20 charge, so I'd like to minimize fees if possible.That makes perfect sense, I always thought I was limited to pre tax contributions to get the best match but turns out that our match is simply applied to the first contributions and always goes into post-tax. Might be worth consideration to switch my strategy.
What is the reasoning for prioritizing post-tax 401k over pre-tax?
2019 Goals vs. April UpdateWith these savings numbers you must be moving at crazy pace. How many more years til FI?
$174,500/ $97,220 -- 56%
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| Account L 401K: J 401K: L rIRA: J rIRA: L HSA: J HSA: Brokerage: Total: | January $4,086 $1,634 $2,000 $0 $750 $42.34 $0 $8,514 | February $4,086 $1,634 $1,500 $0 $250 $278.46 $0 $7,750 | March $9,919 $1,634 $2,500 $6,000 $250 $398 $0 $20,476 | April $4,294 $1,639 $0 $0 $250 $278 $0 $6,462 | Total/Goal $22,386/$50,000 $6,541/$20,000 $6,000/$6,000 $6,000/$6,000 $1,500/$3,500 $998/$3,500 $0/$20,000 $43,202/$109,000 | % Complete 44.8% 32.7% 100% 100% 42.9% 28.5% 0% 39.6% |
I don't think it's appropriate to add the MATCH that you get from your employer to the savings goal.
Why? Dollars in the 401k are dollars in the 401k regardless of whether they are employee or employer side (disregarding vesting).
I thought the challenge was saving from your paycheck(salary) otherwise, you can include your inheritance, market gains etc
First time I'm joining this, excited to see what I can accomplish. ESPP is somewhat misleading since it was credited to my account this year even though they were 2018 contributions. I won't be getting my Q4 contributions until early 2020 so it should be about a wash in the end.
HSA $416 / $4000
HSA Match $1000 / $2000
401K Pre Tax $1466 / $19000
401K Pre Tax Match $733 / $9500
Roth IRA $500 / $6000
Mortgage Principal $800 / $9600
Taxable Account $4403 / $15000
Total: $9318 / $65100 (14.31%)
| HSA $1874.97 / $5000 HSA Match $1000 / $2000 401K Pre Tax $6605.28 / $19000 401K Pre Tax Match $3302.64 / $9500 Roth IRA $6000 / $6000 Mortgage Principal $4000 / $9600 Taxable Account $3000 / $15000 |
As a 4th year participant in these annual challenge threads, I have to disagree with @tampaite about counting employer contributions to retirement plans. These are dollars being deposited on our behalf and are part of our overall comepensation. There are numerous threads on how to calculate savings rates and many agree that adding in the employer contributions should be included. I also disagree that it's the same as including market fluctuations. There are already other threads for tracking/reporting changes in overall NW/Balance.
My thinking on the purpose of this thread is to motivate one aother (and more importantly ourselves) in adding 'NEW' money to our savings goals/investments regardless of where the money is coming from. I rather like this aspect because regardless of what is going on with the larger market (and thus balances) I'm focusing on advancing our goals towards FI. I can only get there by continuing to focus on investing/saving new money that I earn one way or another and addressing my other financial goals like paying off our mortgage next year.
Therefore, I support the flexibility for each person to decide for themselves what they wish to track. Either way, I hope you'll continue to post based on your personal preferences so we can celebrate along with you!
You can disagree with me. No problem. In the same tone, I don't see why market gains and inheritance and tax refunds etc can also be considered as "savings" even though you aren't saving from your paycheck.
Anyway, as you said each onto their own but my opinion would be not to count matching as savings as you are not saving it from your paycheck.
2019 Goals single: $60k2019 Goal 6/19/2019 Update
Just started a new job in March 2019
401k: $3140 / $19000
401k match: $663 / $2650
Traditional IRA: $1400 / $6000
HSA: $628 / $3500
Taxable Brokerage: $6,750 / $28850
Total: $12,581 / $60000 ~ 21% Goal
Late to the party as well. Just started a new job in March. Didn't have a 401k last year or HSA. Currently 25% of my check is going towards funding my 401k. I was penalized on taxes so an extra chunk of income is going from my paycheck towards taxes. Most of my earnings is residual income from realestate.
At $83,374 so far this year saved on my single income. Will easily hit it mid July, unless I end up buying this car I’ve been wanting forever. We’ll see.
| Bucket: Roth IRA 2018 Roth IRA 2019 457b Pension contributions Pension employer contributions Cash Total: Progress: | Goal: $5,500 $6,000 $19,000 $4,050 $9,558 $6,000 $50,108 100% | Q1 $5,500 $5,500 $100 $1000 $2500 $0 $14,600 29.2% | Q2 $5,500 $6,000 $6,671 $2025 $4800 $0 $24,996 49.88% |
| Account L 401K: J 401K: L rIRA: J rIRA: L HSA: J HSA: Brokerage: Total: | January $4,086 $1,634 $2,000 $0 $750 $42.34 $0 $8,514 | February $4,086 $1,634 $1,500 $0 $250 $278.46 $0 $7,750 | March $9,919 $1,634 $2,500 $6,000 $250 $398 $0 $20,476 | April $4,294 $1,639 $0 $0 $250 $278 $0 $6,462 | May $4,294 $2,564 $0 $0 $250 $418 $1,000 $8,526 | June $4,294 $1,730 $0 $0 $250 $278 $3,000 $9,553 | Total/Goal $30,973/$50,000 $9,201/$20,000 $6,000/$6,000 $6,000/$6,000 $2,000/$3,500 $1,693/$3,500 $4,000/$20,000 $59,867/$109,000 | % Complete 61.9% 46.0% 100% 100% 57.1% 48.3% 20% 54.9% |
Epic pay cut last year; just accepted yet another new gig as of April 1 bringing my salary back up, so new goals for CY19 in order:
TSP $19,000
457 $25,000
Pension $13,000
Invest $22,800
ROTH $7,000
TOTAL $86,800
The main reason we max out our after tax 401k first is because then I roll it over to my Roth IRA using the mega-backdoor trick. I like to do this earlier in the year because there's a 5 year waiting period before I can withdraw the money from the Roth. If I first did the 401k pre-tax, then the after-tax, by the time the last deposit went into the after tax 401k it would be January of next year, meaning I'd have to wait an extra year to withdraw it from my Roth. I guess I could do several mega-backdoor conversions per year, but each time I do, it's a $20 charge, so I'd like to minimize fees if possible.
What is the reasoning for prioritizing post-tax 401k over pre-tax?
I remember we had a similar discussion a few years ago on this very topic.
Why? Dollars in the 401k are dollars in the 401k regardless of whether they are employee or employer side (disregarding vesting).
I thought the challenge was saving from your paycheck(salary) otherwise, you can include your inheritance, market gains etc
Well, you can make up your own rules for your own savings if you wish to participate but as the thread OP for this year, I disagree that matching == market gains.
For those of us in a traditional employer/employee situation, matching is part of your total compensation when you choose a job. To separate salary from other compensation doesn't seem to usefully contribute in my opinion. For those of us who are self employeed, employee = employer so it's pedantic to separate the two.
Some of us include principal payments on mortgages. Some don't. I'm not here to henpeck their decision- it's their own FIRE journey.
The main reason we max out our after tax 401k first is because then I roll it over to my Roth IRA using the mega-backdoor trick. I like to do this earlier in the year because there's a 5 year waiting period before I can withdraw the money from the Roth. If I first did the 401k pre-tax, then the after-tax, by the time the last deposit went into the after tax 401k it would be January of next year, meaning I'd have to wait an extra year to withdraw it from my Roth. I guess I could do several mega-backdoor conversions per year, but each time I do, it's a $20 charge, so I'd like to minimize fees if possible.
What is the reasoning for prioritizing post-tax 401k over pre-tax?
You may want to verify, but I thought that the 5 year countdown is from the first deposit/conversion. I don't think the 5 year waiting period applies to each dollar, so I think you're fine to save in any order you want.
I found that article a little bit confusing, but then realized the nuance is rollover from 401K vs. IRA. If I understand it correctly, once you fund a Roth IRA, there's only one 5 year waiting period for any money, but when you convert from a 401K, then there is a separate 5 year rule for each conversion. That's what I was missing (which is probably the entire point of a Roth ladder, so, bad on me for not having even the most basic understanding of it).The main reason we max out our after tax 401k first is because then I roll it over to my Roth IRA using the mega-backdoor trick. I like to do this earlier in the year because there's a 5 year waiting period before I can withdraw the money from the Roth. If I first did the 401k pre-tax, then the after-tax, by the time the last deposit went into the after tax 401k it would be January of next year, meaning I'd have to wait an extra year to withdraw it from my Roth. I guess I could do several mega-backdoor conversions per year, but each time I do, it's a $20 charge, so I'd like to minimize fees if possible.
What is the reasoning for prioritizing post-tax 401k over pre-tax?
You may want to verify, but I thought that the 5 year countdown is from the first deposit/conversion. I don't think the 5 year waiting period applies to each dollar, so I think you're fine to save in any order you want.
I used this as my reference, regarding the 5 year rules, specifically the section entitled "The Second 5-Year Rule, For Roth Conversions":
https://www.kitces.com/blog/understanding-the-two-5-year-rules-for-roth-ira-contributions-and-conversions/
If I'm misunderstanding things I'd love to know, as that means I don't have to wait as long. :)
I'm under 59.5, btw, so those other exceptions don't apply for me.
The main reason we max out our after tax 401k first is because then I roll it over to my Roth IRA using the mega-backdoor trick. I like to do this earlier in the year because there's a 5 year waiting period before I can withdraw the money from the Roth. If I first did the 401k pre-tax, then the after-tax, by the time the last deposit went into the after tax 401k it would be January of next year, meaning I'd have to wait an extra year to withdraw it from my Roth. I guess I could do several mega-backdoor conversions per year, but each time I do, it's a $20 charge, so I'd like to minimize fees if possible.
What is the reasoning for prioritizing post-tax 401k over pre-tax?
You may want to verify, but I thought that the 5 year countdown is from the first deposit/conversion. I don't think the 5 year waiting period applies to each dollar, so I think you're fine to save in any order you want.
I used this as my reference, regarding the 5 year rules, specifically the section entitled "The Second 5-Year Rule, For Roth Conversions":
https://www.kitces.com/blog/understanding-the-two-5-year-rules-for-roth-ira-contributions-and-conversions/
If I'm misunderstanding things I'd love to know, as that means I don't have to wait as long. :)
I'm under 59.5, btw, so those other exceptions don't apply for me.
You're close to understanding it, but you made a reference to wanting to save earlier in the year to lessen the waiting time, and that's not the rule. It's not really a five-year-rule so much as a five-calendar-year rule. If you do your Mega Backdoor Rollover in 2015, you can withdraw those conversions on January 1, 2020 (ok, January 2, since markets wouldn't be open). That applies whether you converted on January 2, 2015 or December 31, 2015.
You're close to understanding it, but you made a reference to wanting to save earlier in the year to lessen the waiting time, and that's not the rule. It's not really a five-year-rule so much as a five-calendar-year rule. If you do your Mega Backdoor Rollover in 2015, you can withdraw those conversions on January 1, 2020 (ok, January 2, since markets wouldn't be open). That applies whether you converted on January 2, 2015 or December 31, 2015.
Sorry if I wasn't clear. What I meant to say is that I wanted to:
A. Lessen the waiting time and
B. Maximize the conversion amount and
C. Pay the least in fees
Since my absolute last 401k contribution for the year will not post until very close to the end of the calendar year (let us say, December 28th), then I would then have to call up Fidelity and ask them to do a rollover to Vanguard. Fidelity will send out a check which will take at least 5-10 days to arrive at my home. Then I have to forward the check to Vanguard, which eventually will post by the next year. I guess what I was thinking was that the 'conversion' 5 year clock begins when Vanguard has the money. But, now I'm not really sure that's the case. Anyone know?
Epic pay cut last year; just accepted yet another new gig as of April 1 bringing my salary back up, so new goals for CY19 in order:
TSP $19,000
457 $25,000
Pension $13,000
Invest $22,800
ROTH $7,000
TOTAL $86,800
October update / on track. Passing $100k saved for the first year ever. Roths maxed out this month too. Yay.
Total: $100916 / $115139 (87%)
2nd mortgage bulk payment from bonus: $0 / $15000
HSA $1874.97 / $5000
HSA Match $1000 / $2000
401K Pre Tax $6605.28 / $19000
401K Pre Tax Match $3302.64 / $9500
Roth IRA $6000 / $6000
Mortgage Principal $4000 / $9600
Taxable Account $3000 / $15000
Total: $25782.89 / $81100 (31.79%)
It looks like I had made an error in my HSA (I can contribute 5k instead of 4k). I also threw in the planned payoff for part of the 2nd mortgage we took out late 2018.
| HSA $3960 / $5000 HSA Match $2000 / $2000 401K Pre Tax $18000 / $19000 401K Pre Tax Match $9000 / $9500 401K Post-tax Tax $1900 / $5000 Roth IRA $6000 / $6000 Mortgage Principal $8000 / $9600 Taxable Account $15000 / $15000 |
I hit over 60k in 2018... so obviously I have to do it again.
Goals:
Bucket Current / Goal
401k $ 0,000 / $ 19,000 (not including the tiny, tiny match from work)
Roth IRA $ 0,000 / $ 6,000
Taxable Brokerage $ 0,000 / $ 30,000
Cash $0,000 / $5,000
------------------------------------
Total $ 0,000 / $ 60,000
We'll see how this goes...
Hoping to get back to $50k+ and 75% savings rate in 2019.
Roth IRA: $6k (done)
401k: $19k (automated)
Taxable: $26k
Total: $51k
My wife just got a new job, so we have new goals for 2019.
Wife 401k contribution: - $19,000 - $19,000
Wife 401k match: $6,900 - TBD, but will hit EOY.
Wife A/T Investments: $25,000 - $31,300
401k contribution: $19,000 - $19,000
401k match: $11,000 - $5,000 (got a bit screwed here)
DC Pension Accrual: $5,500 - $6,200
A/T Investments: $43,000 - $74,100
Total: $129,400 - $154,600
This plus debt reduction of ~$7k, but I don't count that as savings. EDIT: Also funding 7k in HSA, but orthodontia pretty much will wipe it out, so not counting it either.
Redid some numbers to show a true picture of my taxable contributions and might actually exceed the annual target.
HSA $4584 / $5000
HSA Match $2000 / $2000 - DONE
401K Pre Tax $19000 / $19000 - DONE
401K Pre Tax Match $9500 / $9500 - DONE
401K Post-tax Tax $4100 / $5000
Roth IRA $6000 / $6000 - DONE
Mortgage Principal $8800 / $9600
Taxable Account VG $6500 / $ 6500 - DONE
Taxable Account ESPP $18689 / $16000 - Got a raise mid year
2nd mortgage bulk payment from bonus: $0 / $15000 => Decided against this and instead we are investing in taxable.
Total: $79173 / $81100 (97.62%)
| Account L 401K: J 401K: L rIRA: J rIRA: L HSA: J HSA: Brokerage: Total: | January $4,086 $1,634 $2,000 $0 $750 $42.34 $0 $8,514 | February $4,086 $1,634 $1,500 $0 $250 $278.46 $0 $7,750 | March $9,919 $1,634 $2,500 $6,000 $250 $398 $0 $20,476 | April $4,294 $1,639 $0 $0 $250 $278 $0 $6,462 | May $4,294 $2,564 $0 $0 $250 $418 $1,000 $8,526 | June $4,294 $1,730 $0 $0 $250 $278 $3,000 $9,553 | Total/Goal $56,000/$50,000 $22,400/$20,000 $6,000/$6,000 $6,000/$6,000 $3,500/$3,500 $3,485/$3,500 $4,000/$20,000 $101,750/$109,000 | % Complete 112% 112% 100% 100% 100% 99.5% 20% 93.3% |
Getting anxious for the end result:
HSA $4791 / $5000
HSA Match $2000 / $2000 - DONE
401K Pre Tax $19000 / $19000 - DONE
401K Pre Tax Match $9500 / $9500 - DONE
401K Post-tax Tax $4951 / $5000
Roth IRA $6000 / $6000 - DONE
Mortgage Principal $9600 / $9600 - DONE
Taxable Account VG $6500 / $ 6500 - DONE
Taxable Account ESPP $20000 / $16000 - Got a raise mid year
2nd mortgage bulk payment from bonus: $0 / $15000 => Decided against this and instead we are investing in taxable.
Total: $82342 / $81100 (101.53%)
| Bucket: Roth IRA 2018 Roth IRA 2019 457b Pension contributions Pension employer contributions Cash Total: Progress: | Goal: $5,500 $6,000 $19,000 $4,050 $9,558 $6,000 $50,108 100% | Current $5,500 $6,000 $19,000 $4050 $9558 $0 $44,108 88% |