What do you recommend doing if you’re career path is set to make over the Roth IRA Threshold within the years 6-10 years?

What if you are in a career that is set to make above the maximum contribution limit for a Roth IRA in the next 6-10 years? Does it make more sense to open up a Roth IRA today and a new Account once you hit the threshold, or start with a traditional IRA right away, or do you recommend starting with something else?

I don’t know if it makes more sense to spend the next 6-10 years contributing to a Roth, and then not being able to contribute to that once you surpass the threshold (losing 30 years of additional investing). Or to start investing in a Traditional IRA right away to gain the extra years of compounding interest, and deal with the tax rate on withdrawals later?

Or is there a better scenario for the above?

I ask because I’m not sure it makes sense to open a Roth, have it be taxed, and then move it to something that can receive tax… or if there’s a perfect option for this scenario. Really interested to see what you have to say, thank you!

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Welcome @Gianni_Buarne!

As you keep investing over the years, you’re gonna end up with a handful of different financial accounts. For example, when I was a kid my parents helped me open a savings account. That’s all I had or needed. Now I have a savings account, checking account, Roth IRA, traditional IRA, brokerage account, HSA, credit card account, etc, etc.

So you, just gotta accept that as your reality. So to your point, yeah, as long as you’re eligible for a Roth IRA, max it out. If at some point you’re no longer eligible to make new contributions, no big deal. Leave what you have in there, and let it grow and compound indefinitely and continue your new investment contributions elsewhere. :slight_smile:

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