We are 59 and 57 and just getting started on the Roth IRA train (better late than never). However, we made over 203k last year and now need to talk to our tax preparer on what to do. However, we also started contributing to 2020 after 7/1; on track to make more than 206k. Anyway, since we are close to retirement (probably next 5-7 years), should we open a traditional Ira, backdoor Roth, or just max out the 401k?
Your tax preparer will likely be more help than this forum, but I doubt you’ll want to or be able to do the Traditional IRA as you’re way over the income limit and it shares the same tax break as your 401ks. In your situation, I’d probably max out both traditional 401ks, if there’s money left to invest, do backdoor Roth IRAs. Make sure both are in low cost index funds. Check out the three fund portfolio for possible asset allocations based on your age.
Thanks, Jeremy! That’s what I thought too!
1 Like