Roth v Traditional - New to US

#1

Hi All

I recently moved to the US and I’m looking to set up an IRA. I’m 30 y.o, and currently within the salary threshold to setup a Roth but expect that within the next 1-3 years that I will surpass the threshold. Knowing this, would you advise to take advantage of a Roth for this time and then setup a traditional IRA, or go straight into a traditional IRA from the beginning.

FYI - i am already contributing to a 401K through my employer.

Any advice would be greatly appreciated!

Thanks,
Thomas

#2

Hi Thomas,
Good question! While you’re within the salary threshold to contribute to a Roth IRA, you should do it! Because once you no longer qualify, you would do a backdoor Roth IRA meaning you would contribute to a traditional IRA and convert it to a Roth IRA later. So a Roth IRA is the end goal in this case!