There is some nuance and state level differences, but overall I would probably have it as a fork before the taxable account. I would also have a cap at the total amount I would want in the account and by what age. For example my end goal is to fund 50% of college via a 529. That would require somewhere like $75k total at 5 years old.
If planning to switch jobs midway through year, reversing “finish maxing out 401k” and “mega backdoor Roth” would switch to take advantage of both company matches, correct?
Correct. You can double dip on the Mega-Backdoor, but the Pre-Tax 401k contribution is across employers. So you would want to save some space to get as much match at both companies.
curious if where would you fit 529s in this waterfall?
There is some nuance and state level differences, but overall I would probably have it as a fork before the taxable account. I would also have a cap at the total amount I would want in the account and by what age. For example my end goal is to fund 50% of college via a 529. That would require somewhere like $75k total at 5 years old.
I need a dedicated 529 article eventually!
dedicated 529 article would be great. I am especially trying to get a better understanding on recent rule changes on 529->Roth rollover.
If planning to switch jobs midway through year, reversing “finish maxing out 401k” and “mega backdoor Roth” would switch to take advantage of both company matches, correct?
Correct. You can double dip on the Mega-Backdoor, but the Pre-Tax 401k contribution is across employers. So you would want to save some space to get as much match at both companies.