In 2023, you can contribute up to $66,000 if you’re under 50 and $73,500 if you’re 50 or older to a 401(k) You can leverage these limits by taking advantage of the Mega Backdoor Roth – a powerful provision within your Intel 401(k). The Mega Backdoor Roth allows you to contribute after-tax dollars and convert those dollars to Roth. You can maximize your retirement savings and take advantage of the tax benefits associated with a Roth. Your regular 401(k) contributions increased in 2023: • Under 50: $22,500 • 50 or older: $30,000 ($22,500 + $7,500 catch-up contribution) Intel will match up to 5% (temporarily reduced to 2.5% on 01/01/2023) of your salary. For example, if you make $200,000, Intel will contribute $5,000 (pre-tax) to your 401(k), assuming you also contribute at least $5,000. 00:00 Introduction 00:12 2023 Intel 401k contribution limits 00:25 What is the Intel Mega Backdoor Roth ****** LIKE this video? HIT the like button! SUBSCRIBE to our channel to view more videos created for highly compensated tech professionals FIND Alex Krider, MBA, CFP®, EA on LinkedIn: RESOURCES for Intel professionals at BLOG ****** The Mega Backdoor Roth is a way for high-income earners to utilize the benefits of a Roth. Within a Roth your money grows tax-free. These same dollars and the interest earned are tax-free when accessed in retirement (59.5+ years old). Having additional money in a Roth account enables you to manage your taxes when you make retirement distributions. This gives you more control over future taxable income. ******************************* Avier Wealth Advisors 5200 Meadows Road Lake Oswego, OR 97035 info@avieradvisors.com Website: We focus on providing comprehensive financial planning and investment advisory strategies for tech professionals and their families. Third Party: Avier Wealth Advisors is not affiliated with Intel. There is no guarantee that the information we have provided is accurate. Intel employees are encouraged to contact their employer should they have any questions regarding their employee benefits. Taxes: Avier Wealth Advisors does not prepare taxes. The tax ideas presented are meant to demonstrate general concepts rather than precise calculations. We consult with your tax professional for exact calculations....(read more)
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When it comes to saving for retirement, there’s no better time to start than now. One of the most popular retirement savings vehicles is a 401(k) plan, which allows employees to contribute pre-tax dollars toward their retirement savings. However, the 401(k) plan has its limits, both in terms of contribution limits and tax benefits. This is why the Mega Backdoor Roth 401(k) plan has been gaining popularity in recent years. This plan allows employees to contribute after-tax dollars to their 401(k) plan, which can then be converted to a Roth IRA, where all future growth and withdrawals will be tax-free. Starting in 2023, Intel employees will have the opportunity to contribute to the Mega Backdoor Roth 401(k) plan. This means that employees will now be able to save even more money for retirement and take advantage of tax-free growth and withdrawals. Here’s how it works: Each year, employees can contribute up to $19,500 to their 401(k) plan. If they are 50 or older, they can contribute an additional $6,500 in catch-up contributions. However, the limit for after-tax contributions will be increasing to $10,000. This means that employees can contribute up to $29,500 to their 401(k) plan each year, $19,500 in pre-tax contributions and $10,000 in after-tax contributions. These after-tax contributions can then be converted to a Roth IRA, where they will grow tax-free. One of the biggest benefits of the Mega Backdoor Roth 401(k) plan is that it allows high-income earners to save more for retirement while taking advantage of tax-free growth and withdrawals. This is especially important for employees who expect to be in a higher tax bracket in retirement, as they will be able to avoid paying taxes on their retirement savings when they withdraw them in retirement. Another benefit of the Mega Backdoor Roth 401(k) plan is that it allows employees to diversify their retirement savings. By contributing to both a traditional 401(k) plan and a Roth IRA, employees can have a mix of pre-tax and post-tax retirement savings, giving them more flexibility in retirement. If you’re an Intel employee, it’s important to start planning for retirement now. With the Mega Backdoor Roth 401(k) plan becoming available in 2023, you’ll have even more options for saving for retirement. By taking advantage of this plan, you can potentially save thousands of dollars in taxes and have more money to enjoy in retirement. https://inflationprotection.org/save-thousands-to-a-roth-with-the-2023-intel-401k-and-mega-backdoor-roth/?feed_id=95572&_unique_id=64591a99a8cc4 #Inflation #Retirement #GoldIRA #Wealth #Investing #2023 #backdoorroth #backdoorrothira #Employeebenefits #Intel #Intel401k #MegaBackdoor #MegaBackdoorContribution #MegaBackdoorRoth #megabackdoorroth2023 #MegaBackdoorRoth401k #MegaBackdoorRothConversion #megabackdoorrothira #ROTH401k #rothconversion #RothIRA #whatisamegabackdoorrothira #BackdoorRothIRA #2023 #backdoorroth #backdoorrothira #Employeebenefits #Intel #Intel401k #MegaBackdoor #MegaBackdoorContribution #MegaBackdoorRoth #megabackdoorroth2023 #MegaBackdoorRoth401k #MegaBackdoorRothConversion #megabackdoorrothira #ROTH401k #rothconversion #RothIRA #whatisamegabackdoorrothira
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