Are you guys maxing it out and if so, are you doing so off your base salaries or with your bonus? Some funds tend to have higher base of $175+ where 10-15% will max you out from your base alone. For those of you who have lower base salaries, are you contributing over 15% per paycheck?
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Based on the most helpful WSO content, there isn't specific information in the dataset about how PE associates are contributing to their 401(k) plans, whether they are maxing it out, or if they are using their base salary or bonuses for contributions.
If you're looking for detailed insights or advice, you might want to explore threads on WSO forums where professionals discuss compensation strategies, including 401(k) contributions, or consult with a financial advisor for tailored guidance.
Maxing out my Roth 401k
15% per paycheck
Always max your roth and allocate whatever your company will match.
To say this back to you for clarification, max your Roth IRA, and contribute to your 401k up to the match?
Re: Roth - don’t you exceed the income limit for contribution? Or is there a way to get around this?
Backdoor Roth.
Open a traditional ira in fidelity and a Roth IRA. Contribute money to traditional ira. Wait about a day to process. Transfer money from traditional account to Roth account. Done, that easy
Technically , IF you are going to do a pretax 401k, aren’t you better off maxing based on bonus? Since bonuses are taxed at higher state rates, you get high tax savings?
But yes as an aside curious if yall do traditional or Roth 401ks… the nice thing about Roth is you can take out the contribution portion at any time without paying taxes on it
How is the bonus taxed at a higher rate? It’s all income
Everything is taxed at w2 but you should do it off bonus bc of income smoothing benefits
Doesn’t matter. You’re thinking about things being taxed at your marginal rate which is higher. But you pay taxes at end of year based on your total income. A $ is a $ whether from bonus or base. It’s more just a preference of whether you’d prefer to just knock out your contribution in a lump sum or gradually throughout the year
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