I always maxed out pre-tax 401(k) (to save some tax today) then spill over to after-tax 401(k) max out. After I qualified for deferred comp plan, I was able to drop in to a lower tax bracket so now I max out Roth 401(k) and then max out after-tax 401(k). Our projected tax bracket in RE will be same as today so it makes sense to NOT save tax today. YMMV.I’m a big advocate of contributing to an after-tax 401k and converting to a Roth. I’m doing this and it’s helped increase my Roth savings significantly.
The problem I run into is how to balance this with a 401k. Should I fully fund the 401k and the rest into the Roth or fund 401k to company match and the rest in Roth.
PS: We have a relatively small after-tax bucket but it is all real estate which throws a pretty large chunk of cashflow. And we have a growing differed comp account. So we are not worried about covering the gap years.
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