For the HSA transfer, I would consider once a year instead of every single month. Just let it build up and then transfer to Fidelity at the end of every year. In the interim, the cash is there if you do end up needing it for medical reasons.I maxed HSA, Roth IRA, and just shy of maxed 401k for 2023.
For 2024 I'm trying to max HSA through payroll deduction for tax savings for both me and employer, haven't seen a penny of those deductions deposited to my company HSA account yet, which I was planning to do a once a month transfer to Fidelity HSA into FZROX. Payroll folks are trying to figure it out, I'm sure it'll be fine.
401k deduction set to about max by year end, seems logistically difficult to max and not sacrifice company match since we get bonuses of unknown amounts (but somewhat predictable) near the end of the year, which 401k deductions come out. They only allow choosing a percent deduction, not a dollar amount, and it can take 0-2 pay cycles to take effect. Frustrating, any tips?
I maxed my Roth IRA for 2024 this month, FZROX.
What do I do for the rest of the year? Is taxable (VTSAX for me) the best choice? I also have about $20k EF sitting savings accounts, mostly in Ally at 4.25%. I'm trying to figure out if I'm optimized, missing any options for more gains or lower taxes or should I just put everything extra into VTSAX in a taxable account for the rest of the year?
I changed my 401k allocation from the TDF to:
75% FXAIX Fidelity 500 Index
15% FXNAX Fidelity U.S. Bond Index
10% FTIHX Fidelity Total International Index
Maybe a bit bond heavy in the 401k, but probably overall balanced to where I want to be given IRA and HSA in FZROX and taxable in VTSAX.
For your 401k question - I work in sales so I struggle with this also. What I do is contribute 15%, enough to get the max early before year end, then if I get oddly close super soon because of larger checks I can just drop my % way down to adjust. It is kind of guess work - I usually give myself a $500 buffer, so if the max is $23,000, I will cut off contributions probably after $22,500-$22,700 to avoid the possible tax hassle of over contributing.
Statistics: Posted by learning30 — Wed Mar 27, 2024 10:17 pm — Replies 16 — Views 2144