That sounds right. From a capital gains standpoint I don't think there is much to do other than be aware what you will owe and pay it. I called it out because it is an upfront cost but it shouldn't change your plan.Any advice on what to look out for with capital gains implications?There is some risk that you could take money from taxable and not contribute the same amount into 401k and you want to make sure to keep an emergency fund. There might also be capital gains to be aware of but in general it's a good move.To summarize (Please correct me if I am wrong):OP has about $100k in taxable and is planning on contributing $23.5k of $46k possible 401k contributions (combined). Assuming biweekly paychecks that is $900/paycheck increase in 401k contributions and removal from taxable. After about 5 years taxable would be gone and 401k would be maxed.
Ideally the OP might not withdraw $900 all the time and reduce that as salary increases.
1. Sell all current taxable accounts
2. Max out IRA contributions
3. Increase contributions to 401k's so they hit yearly max
4. Put the leftover taxable money into my own Fidelity brokerage account (i.e. FSKAX)
5. Sell from new taxable account as needed to continue hitting tax-advantaged maxes
Does that sound like the correct approach?
Statistics: Posted by funxional — Wed Mar 27, 2024 10:16 pm — Replies 17 — Views 1226