How to do a backdoor Roth IRA?

Hey Jeremy and others,

Early this week I was advised to seek a “backdoor Roth IRA” because my wife and I exceeded the max combined salary allowance for . We’re both maxing out employer matched 401Ks and are aggressively seeking how else to plan for our retirement. We’re might be a little delayed to the part at age 31 and 32, but we’re starting nonetheless.

I’m trying to educate myself on a Backdoor Roth IRA with various explanations out there. I know wanted to hear from those who’ve done and might want to share the experience on doing it successfully and any other best practices. Take care!

Hey @mdom77!

When you say you’re both maxing out your 401ks, is it just the match or the full $19,500 each? If it’s the full $19,500 each, for a total of $39,000/year going into a tax-deferred investment account, that’s excellent!

A backdoor Roth IRA could get you $6,000/each into a Roth IRA. I think this post discusses the same question!

Good catch. We are just doing the match and I guess we can certainly see if we can do more. We refinanced our home to lower our interest and are saving close to $1,000 from Sept and onward. We’re discussing how we can wisely continue using that money that we would’ve been paying in our previous mortgage.

Perhaps truly “maxing” out our employer retirement accounts is the better move than opening more retirement accounts?

Yeah, if it’s me, I’m definitely going to fill up those 401k before I try to monkey around with backdoor Roth IRAs. Just less headache, paperwork, complexity etc.

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