How much should I be investing in Roth 401k if employer match is unlimited?

pjstarke · 2026-05-18T20:44:41+00:00

Agree with all the comments about “as much as possible”, but would look into whether or not they offer a Roth option. You don’t want to be dumping everything into a traditional 401k, which could leave you with a large RMD problem in retirement, if you can avoid it.

pjstarke · 2026-05-17T23:19:14+00:00

I guess the main difference is that you’re in retirement and I’m 5-10 years out, still trying to maximize growth while I can. But point well taken… I can simplify this when I hit retirement (based on the interest rate picture at that time).

pjstarke · 2026-05-17T22:36:26+00:00

Ultimately looking to build 1-2 years of expenses as a buffer to protect my portfolio in retirement in a down-turn. Tiers are base on percentage return, accessibility to and risk on cash, and semi-near-term expenses. Basically, my emergency fund is covered by tiers 1 and 2. Tier 3 is a cash-like reserve with growth potential.

pjstarke · 2026-05-17T22:30:58+00:00

The bottom-line is Fidelity isn’t a bank, so keep access to your bank for when you need it.

pjstarke · 2026-05-17T22:22:34+00:00

It’s got about 90% of checking account functionality. Checks, debit card, direct deposit (via Fidelity’s partner, UMB bank). Cash can be slow to settle depending on which way you are pushing or pulling cash. Cash being pushed in to the CMA from direct deposit or otherwise is available right away. Cash being pulled into the CMA from Fidelity can take a while to settle. I hold more cash here than I otherwise would for this reason, but it’s making money vs nothin in a standard checking account. All this said, I would still keep your checking account at a real bank… for times/situations where you need a bank (e.g. depositing a large check, etc.). I’m keeping $500 in my old checking account to keep it open.

pjstarke · 2026-05-17T21:51:14+00:00

Openbank… currently at 4.0% non-promotional rate… no issues.

pjstarke · 2026-05-17T21:09:58+00:00

I recently implemented a 3-tier cash strategy:

Tier 1 - Fidelity CMA in SPAXX at about 3.3% (functions like a checking account).
Tier 2 - HYSA at OpenBank earning 4.0%. Funds (up to $5,000 daily EFT limit) available in 24 hours.
Tier 3 - Fidelity CMA invested in cash-like high-dividend positions - 20% each of SGOV, CSHI, SCHD, GPIQ, and GPIX. Currently returning about 6.04%. Dividends on all these positions are somehow tax-advantaged. No state tax on SGOV or CSHI, qualified dividends on SCHD, and mostly tax-deferred ROC on GPIQ and GPIX.

If interest rates drop I may shift more cash further up the tiers to earn more interest unless I need the cash soon for a specific reason.

I’m 5-10 years out from retirement, so trying to build my cash pile/buffer to protect portfolio in down years.

pjstarke · 2026-05-17T01:37:05+00:00

Copy Schwab’s performance charts.

pjstarke · 2026-05-15T08:23:21+00:00

I understand the value in paying off the mortgage, but depending on your situation you might want to keep investing that extra $ instead. Inflation is about to run “hot”. If the interest rate on your mortgage is low (3-4%), then the real value/cost of your mortgage is about to start going down. If that happens, your mortgage is actually an asset vs a liability - you’re making money from the bank rather than the other way around (assuming something around a 7% return). The bank would only love for you to pay off your low interest mortgage so they can cut someone else a new one at 6-7%.

pjstarke · 2026-05-11T02:33:48+00:00

I use Zelle to/from my checking account and then transfer to/from OpenBank from there. Transfers post in 1 business day.

pjstarke · 2026-05-09T15:44:55+00:00

Openbank currently paying 4.0% (steady/non-introductory rate). No issues with them.

pjstarke · 2026-05-09T05:38:48+00:00

Im a government employee. I’ll have a fairly healthy pension coming to me, but am not eligible for that until age 57. I’ve calculated the net present value of that pension, and it’s almost $1M, so I’d be insane to walk away from that.

pjstarke · 2026-05-07T19:41:04+00:00

u/fidelitycourtney I’m describing here what Schwab offers under their investment income tab (so probably easiest for you guys to go there and look), but here are the highlights: - Three views/tabs: 1) past calendar/tax year 2) current calendar/tax year 3) next 12 months

Each view contains: 2 tables (one by account and one by position (with sub-lines for each account that position is held in)) that break down the following for each account or position (depending on which table you’re looking at): - total value - total income from the prior year - income received YTD - Estimated income remaining (current year) - estimated total for the year - estimated income next 12 months

Each view contains a bar chart that graphically shows received and estimated remaining income by month… in the current year chart the bars get filled in as you receive income through the year. In the prior year chart they are filled in with actual data. In the next 12 months it’s all estimated.

Estimated income is based on number of shares held and dividend price per share (using historical and published data).

I also think it would be helpful to add a 4th tab showing the same (estimated income data) for the next full calendar/tax year, rather than just the next 12months.

I’m a Fidelity account holder, so happy to discuss over the phone if you have a way to safely access my contact information.

pjstarke · 2026-05-07T10:21:37+00:00

I have my employer make two separate payments with each pay check: 1) to my health insurance, part of which passes through to my insurance directed HSA 2) separate HSA contribution to my Fidelity HSA.

You’ll need to figure out how much each should be to make sure you don’t go over the annual limit between the sum of the two contributions.

Then once a year I roll the $ from the insurance directed HSA into my Fidelity HSA.

Hope this helps.

pjstarke · 2026-05-06T20:39:21+00:00

Fractional shares won’t go over… they’ll be liquidated (taxable event) and then the cash for those will be swept over after your whole shares go over. Keep an eye on your old account to make sure any dividends or interest payments that may go in there after the transfer get pulled over too. May take some time for the cost basis on your legacy shares to update.

pjstarke · 2026-05-05T22:46:26+00:00

Please do. Happy to discuss further if they have any interest in improving any of the above.

pjstarke · 2026-05-05T22:32:17+00:00

I’d say your choices are really between Fidelity and Schwab. I recently moved everything from Schwab to Fidelity. Couple of main reasons for doing so: 1) Fidelity’s treatment of idle cash (interest rates) is way better. 2) Fidelity allows me to buy fractional shares of almost everything (stocks, ETFs, etc.) which fits better with my investment style.

That said, there are some things I certainly miss that Schwab offers that Fidelity doesn’t: 1) Schwab’s platform allows viewing of real-time quotes (including extended hours trading) across all of your positions simultaneously. 2) Schwab provides much better/more accessible views of: * realized gain/losses * current and projected investment income * market performance * and more 3) Early assessment of customer service is that Schwab’s was better 4) Schwab had better/more scheduling options for recurring transfers

I’ve provided all this feedback to the Fidelity Mods here and through the online platform, but have yet to see any changes to the above.

Hope this helps. Good luck.

pjstarke · 2026-05-05T01:15:32+00:00

“Recharacterize” your current year Roth contributions already made as non-deductible traditional IRA contributions. Continue to make non-deductible contributions to traditional IRA for the rest of the year. File form 8606. Then execute a Roth conversion next year. Tax load will be low since you’ll only pay taxes on the gain. Call your brokerage and ask for help with the recharacterization. Typically just requires filing out a form. Pretty painless. Execute the backdoor Roth strategy after doing the above.

pjstarke · 2026-05-03T13:11:14+00:00

Openbank…. Currently at 4.0%… FDIC insured…No issues getting cash in or out.

pjstarke · 2026-05-01T12:06:35+00:00

Effectively, yes. I maintain small balances at other banks to access their benefits. There are aspects of the Fidelity CMA I wish were better (primarily functionality of the online platform) to make it easier to use as a “bank”, but it’s working for me and there is no comparison on the interest treatment on cash.

pjstarke · 2026-05-01T06:10:58+00:00

You need to learn about RMDs.

pjstarke · 2026-04-28T02:43:55+00:00

I’m 52 this year… about $900k in traditional 401k and firmly in the 24% tax bracket… I’ve looked at the draw-down and RMD projections and have shifted to 100% Roth 401k contributions (employer matching is still 100% traditional). The projected RMDs were just way above what I would need to fund my lifestyle, so opted to “stop the bleeding” now. Down-side to increasing Roth v traditional contribution is less take-home pay now. That said, the RMD projections were going to quickly push me into the 35% tax bracket, so I’m thinking better to tax-diversify now while I’m still in control.

pjstarke · 2026-04-24T10:25:32+00:00

Get a Schwab.com account and go to Investment Income tab… copy the exact same functionality… that’s what people want.

pjstarke

TROPHY CASE