Just realized I can’t contribute to a Roth since my income is too high (I think). TC ~190k and wife makes around 90k. I’ve only been contributing for a few months now at the advice from a CFP friend (he never asked me what I made). Should I go back to 401k contributions or is there a better option here? I expect my retirement income (via pension) to be higher than my HHI now.

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Is it a Roth IRA? If it is.. then you’ll need to call your brokerage and reallocate the funds as you didn’t realize you were over the income threshold. If you don’t do that, then you could face paying penalties at tax time.

There’s the back door roth method that KPMG suggested.

There are lots of things out there. Your best thing to do would be researching and learning about them. There’s a lot of information on the internet, youtube, instagram… Or hiring someone that knows more. You’ll likely get a lot of mixed information by asking random strangers on the internet.

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Did you already contribute to a Roth IRA for the year? If so, you’ll need to recharacterize to a traditional IRA and then you can convert back to a Roth IRA. This is assuming you don’t have assets like a tIRA which could make it expensive from a tax perspective to do the backdoor Roth.

Are you leaving your job? Otherwise I don’t think you can just rollover a 401k to IRA unless it’s after tax contributions.

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Another question: if I were to roll my 401k into a Roth IRA, will I be taxed on my cost basis or the FMV at the time of the roll? I ask because my 401k was down like 17% because of the market so if I’m taxed at the FMV it could be an arbitrage opportunity.

Many questions. Is your 401k at your current employer? If so you likely can’t roll the 401k into an IRA. Is the 401k traditional or Roth? If Roth no tax if you can roll it over. If traditional, the entire amount would be taxed. No idea what arbitrage you are talking about. What is your tax rate now that you would pay for a conversion vs what tax rate do you think you will be in when retired. Even if your income is higher, that doesn’t mean your tax rate will be. If you have contributed to Roth IRA but will be over the income limit, contact your brokerage and have them recharacterize the contribution. If you have no traditional IRA currently then just convert it back to Roth.

You're going to have over 280k of taxable income in retirement?

Do you have access to a Roth 401k? For the Roth IRA, you can do a backdoor Roth (watch out for pro rata taxes if you have a traditional IRA balance).

They said their retirement income will be higher

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The people obsessed with Roth and back door here are not considering your withdrawals in retirement and mostly seem to be good advice for early career lower income

Also consider Megabackdoor Roth IRA if applicable

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