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Roth Ira man. Normal if you expect under 122k or only contribute 6k max, but open a backdoor if you expect over 122k or want to contribute more than 6k
$122k being AGI, not gross or net income.
Yes. And contribute the annual max of $6k
Argh, this is a long one. Yes, you should. In fact, you should open two: Roth IRA and traditional.
Check your 401k, now that you are laid off they might start charging fees. If so, rollover the 401k to your new IRA.
Contribute regularly to Roth IRA only.
Once you find new position, do reverse rollover and move the old 401k from IRA to new 401k.
Keep your traditional IRA balance at $0, plan to make too much money to do regular Roth IRA contribution, and need to be set up for backdoor Roth IRA.
You should rollover your old 401k into the new one directly
Employers can chose to disallow conduit / rollover Ira to 401k rollovers, While still allowing 401k -> 401k
Can someone break down the different IRAs haha? I’m not really familar
Four main types of retirement account, for the generic person who has company sponsored plan (there's others of you are self employed) (non profit excluding)
It's like a 2x2 of employer sponsor vs. tax treatment:
Employer relationship:
- 401k - employer sponsored 19,500 limit. No income restrictions. May charge fees if you separate from employer
- IRA - individual account, not tied to employer. Has income limit depending on tax treatment, and access to 401k
Tax treatment:
- traditional - save pre tax money. Grows tax free. Lay ordinary income taxes when withdraw
- Roth - contribute after-tax, grow tax free, no taxes on withdrawal
Income limits for IRA:
- ~78,000 for traditional to get the tax deduction if you are covered by 401k
- Roth: ~137000, after which you need to backdoor Roth
Backdoor Roth: contribute to regular IRA. Do not take the tax deduction. Convert the traditional IRA to Roth. Taxes will be due based on pro-forms/ratio of pre-tax/post-tax money in all of your IRA.
This is why I stated do not keep any $ in traditional IRA if you can help it.
Yes get a trad. IRA and Roth IRA
No?
They share a contribution limit.... only do Roth