I am sure this is addressed elsewhere but I am not finding clear answers. I make 136k base and probably another 20% in bonus each year. Should I be doing an IRA ,Roth IRA or backdoor? I have read all about these and understand the tax but I am confused on which makes sense for me

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20% bonus at Accenture? Definitely was not my experience when I was there

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Someone keep me honestly on this one:
If you max 401k (19500) it would lower your taxable income by that much. 136k -19.5k would put your MAGI below the income limit, so you could still regularly contribute to Roth IRA this year. Assuming you didn't have huge GME (or other) gains

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Op also has a bonus. The bonus will likely put them back over the limit.

Also, The cutoff for contribution to a roth ira is a MAGI of 140k, but the maximum contribution is reduced once you hit 125k.

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Do a Roth 401K if your employer offers it and a backdoor Roth IRA on your own (contribute up to $6k a year to a traditional IRA then immediately do a rollover to your Roth IRA). If your company allows for additional after tax contributions and an in-plan conversion, do the mega backdoor Roth contributions as well.

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Absolutely! Open a traditional and Roth IRA with your personal bank as well if you want to squirrel away an additional $6k each year through the backdoor Roth IRA method (which you should if you have the $ for it!). Fidelity let’s you open these for free and their trading platforms and resources are excellent.

You should be doing 401k (either traditional or Roth, up to you) and then doing a backdoor Roth IRA which is separate from your employer. You have to do backdoor instead of normal Roth IRA cause you are above income limit.

You might as well do backdoor just to be safe since it’s so easy and same amount.

You can do it anytime, only thing is don’t invest the money you put into tIRA because you don’t want gains when doing the rollover

Roth vs traditional 401k comes down to your current vs. future earnings. Are you early in your career and expect your salary to significantly increase in the future and at retirement? Then it’s better to do Roth 401k now. Are you already mid-late career and at your peak earnings level and you think your income in retirement will be lower than current? Then go traditional 401k so you pay lower taxes when you withdraw later in life.

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