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The back door Roth IRA should definitely be considered. Do either of you currently have traditional iras? If so the backdoor Roth will create some tax depending on the size of the traditional iras. If you don’t, the backdoor Roth is very easy. You set up a traditional Ira and contribute to it. Because of your income you will not get a deduction for that contribution. You immediately convert the traditional Ira to a Roth IRA. Since the entire amount was nondeductible, you pay no tax on the conversion. You are now in the same position as if you had directly contributed to the Roth IRA.
If you have kids do 529 plans. Or if you dont yet but will have kids, set up 529 plans and start funding now and transfer balances when they're born. If you have older kids with earned income, fund Roth IRAs in their name by matching their earned income up to limit
We do not have our own traditional IRAs at the moment. Our employer does have Roth 401k option but we don’t use. So we should set up the traditional IRA which is not our employer Roth correct? And how much are we allowed to contribute to this based on our income? How do we pay taxes on it?
Assuming you are both under 50 you can each contribute 6000 per year now. You are correct this is not employer related and should each set up your own traditional and Roth IRA accounts at a brokerage of your choice, we use fidelity but there are other good options also. We just take the contributions from our checking account. You have already been taxed on the money so there is no additional tax to be paid.