4 ms·
This is very solid advice. I would only add that you should consider maxing out your Roth IRA contribution every year (6k USD per year), particularly if you ar
by cashsterling 5y ago
This is very solid advice.
I would only add that you should consider maxing out your Roth IRA contribution every year (6k USD per year), particularly if you are young. You use post tax dollars to fund your Roth IRA, but all of the funds in your Roth IRA, including all gains, are tax free when you retire.
- ReaLNero 5y agothe GP's 14k a month salary would put them above Roth IRA income limits. The only option is a backdoor Roth IRA contribution.
- nodesocket 5y agoThanks to absurd tax laws, they won’t qualify for roth IRA. I’m in the same boat, have to look at backdoor, but does draw some heat and attention of the IRS doing back doors.
- RhysU 5y agoAFAIK, backdoors are a non-issue with the IRS so long as the paperwork is done correctly. Do, do, do read up on "pro-rata" considerations because the regular->Roth conversion of post-tax contributions is definitely not tax-free if you have any other pre-tax dollars sitting about in any IRA.