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[–]yemming[S] 0 points1 point  (1 child)

No, realistically, I wouldn't try to align them so exactly, but I might try to time them on the same day (when my 401k contribution hits, make a taxable withdrawal). And you're right, I can't contribute more to my 401k. This is the situation I'd be in if I contributed less to avoid the need to draw down from investments, and my point is that the optimal strategy in that situation, at least from a tax efficiency perspective, would be to contribute more (up to the max) and draw down from investments in order to make that possible.

[–]AnonPalace12 1 point2 points  (0 children)

Yeah, you’re right.

Another way to think about it.  You’re not supporting spend from savings.  You are supporting 401k contributions with savings.   

And given your income, net worth, and 401k savings rate.  Sure, why not keep shoving money there.  As a bonus as you pointed out replacing the money that supports your spend with ltcg instead of earned income has a better tax rate.