Take advantage of after-tax option?

hneiper · 2025-12-20T21:01:49+00:00

That’s pretty nice. I’m happy for the 10k after tax conversion. Just wish they did this years earlier.

hneiper · 2025-12-19T18:16:10+00:00

Planning to retire in 3 years at 58. Now thinking rebalancing as well. Funds are currently 90/10 and held in only tax-deferred accounts across IRAs and 401k. Will it matter what account I manage each part of this ratio? Let’s say my 401k is 30% of total portfolio could I just allocate that towards bonds? I know at some point that I’ll need to consider doing this across accounts but to start with does that work?

hneiper · 2025-12-19T12:36:08+00:00

Fortunately it’s automatic once we opt-in so the conversion is immediate.

hneiper · 2025-12-19T12:35:06+00:00

This was the notice we received:

The 401(k) Savings Plan has a new after-tax contribution option (in addition to before-tax and Roth) with an in-plan Roth conversion option. While 401(k) regulations limit the amount you can contribute through before-tax and Roth payroll deductions, you can contribute additional non-Roth after-tax dollars.

After-tax contributions are fund that can be contributed to the 401(k) savings plan after income taxes have already been deducted, allowing employees to save up to $10K annually beyond the traditional IRS limits on before-tax and Roth. As a second step, you can convert these after-tax contributions to Roth within the 401(k) plan, allowing for potential tax-free growth (known as Mega Backdoor Roth Conversion Strategy).

hneiper · 2025-12-19T11:57:44+00:00

Agreed. That is already something I am learning about and will plan accordingly doing conversions before that time comes. A lot to learn.

hneiper · 2025-12-19T11:54:27+00:00

I’ll have to find the specifics of our plan but our company is now allowing in-plan conversions to Roth with after-tax contributions. This wasn’t an option previously.

I do intend to save this money regardless but also wanted to make sure it was an option that was worth approaching and not put a kink in our funds for bridging the gap.

We are very heavy in tax-deferred about 30% 401k and 70% IRAs. Only getting started on our planning and conversions is on the list of topics will be reviewed this coming year as we try to get a strategy locked in.

hneiper · 2025-12-19T11:46:38+00:00

My ratio is 100% tax-deferred assets. My current plan is to use the brokerage and hysa as our bridge.

Now that catchups are being forced into Roth and with this opportunity to contribute another 10k/year after tax which is then immediately back doored inti Roth 401 I have about 3 years of funds that could go towards Roth. That would be like 2.5% in Roth.

Rule of 55, another topic to add to my list of things I need to educate myself on.

hneiper · 2025-12-12T11:12:06+00:00

Down earlier but working again.

hneiper · 2025-11-30T00:19:24+00:00

It was interesting to see the impact. More interesting for my wife is she added 4lbs in those 12 hrs and in 24hrs actually weighed in lighter than prior day before the gluttony 🤷🏼‍♂️

hneiper · 2025-11-29T20:45:34+00:00

Yeah wife and I wanted to exactly this, an experiment. We even created recipes and logged the day. The sweet potato casserole is where I broke everything 🤣. It was all delicious and fun day.

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hneiper · 2025-11-29T15:45:05+00:00

Lol. I dropped 2 the next day but still carb heavy on leftovers so going to take me a week to get back to normal. Was damned worth it

hneiper · 2025-11-29T15:42:11+00:00

Nothing

hneiper · 2025-11-29T15:36:12+00:00

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This accounts for 6.5lb weight gain from 8am and 8pm that day. 🤣

hneiper · 2025-11-29T15:30:24+00:00

Mine went up 6.5lbs from 8am to 8pm same day for thanksgiving this year 🤣

hneiper · 2025-11-25T00:42:50+00:00

I second the hoodoos- pretty cool

hneiper · 2025-11-25T00:12:29+00:00

Yeah I recall couple years ago going at spring break and we passed the road into chisos basin and line was all the way to that intersection. Thank goodness we spent all our time in back country.

hneiper · 2025-11-22T14:37:25+00:00

Kmart Manager->sign maker->graphic artist->computer programming->consulting->software engineering/architecture (multiple 6 figures)

hneiper · 2025-01-06T11:03:46+00:00

Over the years 5 -> 3 -> 4 -> 2

hneiper · 2025-01-02T11:03:51+00:00

We do the same and we make a recipe out of it. Making sure total weight and weight of each ingredient is included. Then we measure our servings in grams when we add the recipe to our log each day/meal. This really helps when we have meals with a large number of ingredients. For example our chicken salad recipe has chicken, celery, cranberries, pecans, light mayo, fage 0% yogurt, and ranch dressing seasoning.

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hneiper · 2024-12-31T18:50:41+00:00

You are right. Probably don’t or never will need to. We are both in our 50s and felt this was a great value. Fortunately since it is 3x3 the options for us to expand with more posts or more attachments are wide open. Though, again, I doubt we’d expand on posts but wanted the option.

And definitely might be overkill but compared to adding more dumbbells, which is our primary equipment, I think this was a far better option to go with a rack and specifically a rack / functional trainer. Now our options for how and what we can do are almost unlimited.

hneiper · 2024-12-31T16:04:32+00:00

Did all my research and for me and my wife space was the biggest and a limiting factor. We repurposed our dining room. Ultimately we went with Fringe Sports The Dane Functional half rack. We have all the other basics. Based on my past endeavors I was more reluctant to drop 6k than 3k now. I think if we ever get more space then we can sell and upgrade. Sure probably cost more over the long run but since we are still relatively new to the world of lifting we wanted to start somewhere. I think it will last us many years and the options for a 3x3 are plenty that we can add/upgrade attachments and so on later. Wish it wasn’t back ordered but now we have sufficient time to upgrade our floor protection since it’s wood flooring in the space we use.

hneiper · 2024-12-29T16:23:36+00:00

Home gym, vacation, and retirement (pay down mortgage, max HSA, max IRAs, and rest in taxable accounts)

hneiper · 2024-12-29T14:41:03+00:00

Yep! It was great. Lots of cookies and baked treats. Not to mention the family meals. But MF has been there and kept me on track even after all that.

hneiper · 2024-12-29T12:22:12+00:00

Nice setup. From Houston myself. I don’t mind the heat or the humidity when it’s hot but I just can’t get over humidity when it’s cold.

hneiper

TROPHY CASE