Investing: Difference between revisions

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Line 64:

;Notes

* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k

* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k. Otherwise, you will be subject to the pro-rata rule.

===Mega Backdoor Roth ~~IRA~~===

===Mega Backdoor Roth===

Requirements: Your 401k allows after-tax contributions and non-hardship ~~withdrawls~~.

Requirements: Your 401k allows after-tax contributions and non-hardship withdrawals.

;Basic Idea:

* Max out after-tax contributions to your 401k

* Rollover or withdraw the after-tax portion to a Roth IRA

* Rollover or withdraw the after-tax portion to a Roth IRA or Roth 401K

==ETFs==

Line 87:

; [https://www.wealthfront.com/c/affiliates/invited/AFFA-BMT8-AIJ3-FS7E Referral]<br>

;~~Benefits~~

* Tax-Loss Harvesting

; Cash Account

~~====~~Cash Account~~====~~

Wealthfront offers a cash account.

Wealthfront offers a cash ~~(i.e. savings)~~ account.

This account is distributed between up to several banks so it is FDIC Insured up to $3 million <ref name="wealthfrontfdic" />.

This account is distributed between 4 banks so it is FDIC Insured up to $1 million

==References==

{{reflist|refs=

<ref name="wealthfrontfdic">https://www.wealthfront.com/blog/wealthfront-fdic-insurance/</ref>

}}

@@ Line 64: / Line 64: @@
 ;Notes
-* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k
+* To avoid tax complications, you should eliminate all other pre-tax IRAs beforehand by rolling them over to a 401k. Otherwise, you will be subject to the pro-rata rule.
-===Mega Backdoor Roth IRA===
+===Mega Backdoor Roth===
-Requirements: Your 401k allows after-tax contributions and non-hardship withdrawls.
+Requirements: Your 401k allows after-tax contributions and non-hardship withdrawals.
 ;Basic Idea:
 * Max out after-tax contributions to your 401k
-* Rollover or withdraw the after-tax portion to a Roth IRA
+* Rollover or withdraw the after-tax portion to a Roth IRA or Roth 401K
 ==ETFs==
@@ Line 87: / Line 87: @@
 {{main | Wealthfront }}
 ; [https://www.wealthfront.com/c/affiliates/invited/AFFA-BMT8-AIJ3-FS7E Referral]<br>
-;Benefits
-* Tax-Loss Harvesting
+; Cash Account
-====Cash Account====
+Wealthfront offers a cash account.
-Wealthfront offers a cash (i.e. savings) account.
+This account is distributed between up to several banks so it is FDIC Insured up to $3 million <ref name="wealthfrontfdic" />.
-This account is distributed between 4 banks so it is FDIC Insured up to $1 million
+==References==
+{{reflist|refs=
+<ref name="wealthfrontfdic">https://www.wealthfront.com/blog/wealthfront-fdic-insurance/</ref>
+}}