So I was looking at my 401k contributions in Fidelity and it looks like there are way more ways to contribute than I thought. Now I’m really confused on what each category means and what will give me the most in the long run. For my background - my company matches 50% of the first 7% of my pay. And I make enough / enough savings that I try to contribute more than the minimum.
For contribution amount there are these categories :
- pre-tax Up to 75%
- pre-tax bonus election Up to 75%
- Roth Up to 75%
- Roth bonus election Up to 100%
- After- tax Up to 75%
- After-tax bonus election Up to 100%
At the end I can choose to apply something to my daily Roth in-plan conversion. Either - do not convert after tax. Or do convert after tax contribution.
This is all nonsense to me. If anyone could explain it to me that would be incredible!
Submitted August 02, 2020 at 08:35PM by wittycocktailshrimp https://ift.tt/2PoPVg1
