Backdoor Roth is a good idea if I expect to be in a higher income bracket when I retire, is that correct? Currently I’m making $150K at age 28, but I still have major life milestones I want to meet so I have no idea what my retirement income will look like (marriage, kids, house, etc.) How do I decide if I should do a backdoor Roth?

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IMO, Backdoor means (1) you are a high income earner who is priced out of benefits of a tIRA and (2) you should have the ability to max our your 401k.

For me, a backdoor Roth is when I have already maxed out my tax advantaged accounts (ie 401k).

So at that point my question is either backdoor Roth or regular brokerage? For which the answer is simple - take the tax free earnings!

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This. Your original question didn’t set yourself up correctly. Your reasoning was more to determine if Roth or tradition (regardless of 401k or Ira) is correct for you.

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I would recommend modeling out what you think your retirement income will be based on your retirement account contributions. If your retirement income will be greater in real dollars than your current income, then Roth would make sense. I recently built a simple model for this if you’re interested

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Sure, dm me

Does this mean if they make less than 150k a year in retirement the backdoor isn’t a good idea? Thanks in advance

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If the options are backdoor Roth IRA vs traditional IRA the answer depends. I like Roth backdoor early on in your career when your earning potential is still high and very unknown. 10 years from now OP might be making $500k and be very glad they payed the taxes on their Roth contributions back when they were only making $150k. That’s my goal at least 😂 if you’re a realist/pessimist then sure maybe you’ll make less in retirement then you do now at the age of 28 or whatever. But in my experience people who are smart with their money and high earners in their 20s continue on that path throughout life.

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https://www.bloomberg.com/amp/opinion/articles/2020-07-27/retirement-saving-in-covid-should-i-go-traditional-or-roth-ira

This article is a good read

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Jesus $150k at 28. I did something wrong - $92k at 29 😆🤡😥. You're killing it

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I was making $50K until 26 - and then got some good referrals thanks to my network and was able to job hop for a huge increase (I found someone I’m actually friends with who’s in strategy)

A bit of a lucky break, plus I think I interview well.
So far in my career, who you know > what you know

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Amazing salary....congratulations

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