Spouse and I max out 401K contributions, aim to about 2k into brokerage monthly, and he also pays towards his pension. Our combined income is 215k. How do we do a back door IRA? Are there other things we should be doing? We have traditional healthcare and are not eligible for HSA.

like
Posting as :
works at
You are currently posting as works at

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.

helpful

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

like

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.

like

Related Posts

Is a JD a good move? I am currently a claims analyst for a top brokerage firm in NY. However I also want to attend law school as I think it will grow my career. Is this the right move? I plan to go into labor law (I.e. littler and Jackson Lewis) or an attorney for an insurance firm as a backup plan.

Will TCS Provide Dental benefits???
If yes, who all can avail it ?

like

Has anyone here taken a pay cut because of mental health? I work in a very dysfunctional environment with a manager who can be despotic and unnecessarily harsh - and I am tired of it. I have been interviewing with a small company who seems to have nicer management but pay 20% less. And I am just about to jump ship.

like

Thoughts on a starting salary in NY? I have a concentration I healthcare law, this would be my first position. I graduated then Covid happened. I want to start at 90k because inflation and cost of living but a place I’m going to interview with wants to start at 79/80k. Lowball or is that about right?

like

When it comes to the digitization of healthcare, how important is it to have tech exp vs. healthcare exp? I understand it’s ideal to have both, but healthcare seems so far behind other industries. Is it better to go into tech for a few years and then go back to healthcare and try to become a change agent?

like

Thinking of exiting to pre-retirement type job. Something non-profit or at least beneficial with decent benefits. Any suggestions?

like

How do you calculate what tax bracket you will be at when you retire? Keep reading choose the option based of what tax bracket you will be at retirement but I literally have no clue

like

Best investment book recommendations?

like

What list of benefits do you look into when your about to turn in your two weeks? I’m assuming get your dentist/vision checked, FSA, any others?

like

Would you take an offer for $10k more with a title bump and less benefits? Was approached by BDO, and it looks like I won’t be going up for promo until year end in August at D.

like

Pharma companies with great tuition reimbursement. Thanks!

like

Als Partner einer mittelständischen IT Beratung interessiert mich, welche Employee Benefits für Consultants attraktiv sind. Bislang war unser Ansatz die Mitarbeiter einfach überdurchschnittlich zu entlohnen, aber gefühlt werden Perks wie Fitnessmitgliedschaften und co. angefordert und besser bewertet.

like

What is maximum amount you can submit for cell phone bill reimbursement ?

like

If I’m above the Roth income limit, can I do back door Roth for my Roth IRA and mega back door Roth for my Roth 401k? And does back door Roth count against contribution limit for mega back door?

like

What do you do, where are you located, and what's your salary? If you feel comfortable sharing. Just interested in the demographics of the bowl.

I'm a healthcare recruiter wfh in San Diego and I make about 56k annually.

like

I’m a technical consultant but sick of the low pay and bad benefits at SI firms. I have some opportunities at Big 4 with better pay & benefits. Will it derail my career to move to Big 4?

like

Just started my first role in Tech ever as territory sales rep

Previous background all in Sales roles, most recently as a health and life insurance broker…

What can I expect , lay it on me foreal.

like

Stop shaming people for leaving on time. Working overtime every nite benefits no one if you’re exhausted. It’s not a badge of honor either. Work on your time management skills.

likeupliftingsmarthelpfulfunny

What is your agency’s maternity or paternity leave policy?

like

Florida Blue - How is the organization? It seems they have a monopoly in Florida market for insurance. Very curious about its culture the product organization. Keen to know working style and people

More Posts

How much CTC can expect from NielsenIQ with 8 yrs of experience for band 6.1 ?

like

Just moved into my own apartment and I'm thinking about getting a dog for companionship and protection. I'm a 25F and my apartment allows dogs under 30 pounds, any suggestions a good breed for my situation?

like

What is the probation period Amadeus Amadeus IT Group ?

Has anyone just gave up and did an import manually? I’m trying to do an import from one org to another and it’s not pulling all records sigh!

like

NORCAL trip: flying into SJC using pats for hertz. Going to Santa Cruz seeing redwoods on way. Then Monterey/ big sur. Yosemite for 2 nights then Tahoe for 2 nights. Need recommendations for all!

Hey guys. Can you provide me with any recommendations of practice modelling cases.

like

I'm a Pharmacy Technician in tge impatient pharmacy at a local large hospital. I have a busy expensive 8 year old. I would love to work from home. Are there any opportunities for Pharmacy Technicians to work from home and still make a good salary?

Anyone successfully pivoted from audit to project management? Help pls

like

I currently have a Cartier love bracelet, but would love to build my daily stack. Any brands / specific bracelets that you love for the stack? Looking for some unique but upscale finds (willing to spend up to $3-5k per bracelet).

like

I’ve got a really good job. Wasn’t looking to move but a big 4 consulting firm reached out. I received a very generous/life changing offer. I’m so worried about work/life balance if I take this offer. Also worried about layoffs in a year or two when the market gets back to normal. I’ve got an infant and a 5 year old. I know that I can manage my current workload. I don’t want to pass up a great opportunity but I’ve got to be available for my family too!

like
like
like

Getting ready to leave my role - looking for community ops, comm ops, member support, account management - anything in those customer facing roles that is paying minimum 75k. Remote preferred, based in Chicago. Background in freight/logistics and healthcare.

like

About to interview for Tech Architect role in Slack Any pointers on what I should expect in the first round?

like

When Facebook renamed to Meta,people started calling FAANG to MAANG

Can this be changed to MAANGO (little

meaningful :P) by adding Oracle??

It's definitely a good competitor. What's your thoughts?

likefunny

Can an American creative freelance in London? What visas do you need? Anyone done it?

like

Any logo designers here? I’m building a website for a friends music group (classical, pop, jazz genres) and they’re in search of a designer to create their logo (they’d pay up to $900).

Anyone interested?

like

CPA and accounting manager in financial services. I’m thinking of taking on the finance extension at UCLA. Does this make sense for my situation? I’m looking to make CFO someday of an investment company.

like

Why did WK’s CSO leave for a lower title at 72?

like

Additional Posts in Personal Investment Chatter

How much margin is appropriate/recommended on a percentage of portfolio basis? I used to use about 10% but now that we’re in a bit of a correction it’s closer to 20%. I really want to add to positions on these dips but it would only increase the risk given the margin exposure...

like

I am heavy on US stocks. I keep hearing to diversifying a little bit with bonds and international - feel its a bit over rated if I can withstand volatility and far from retirement. Thoughts? I read a lot on this bowl about not having bonds in portfolio under 40

like

Fully aware this is a newbie question. Looking for the best way to get started in purchasing stocks. I used to use E-Trade back in high school like 11 years ago, but stayed away to focus on paying

like

Hello,

Which investment brokerage would you recommend? I am looking into vanguard for a financial advisor. Any advice?

Thank you

Any thoughts on zero cost fidelity funds. Any you like?

like

I have 2 student loans both with an interest rate of 5.2% thru sofi. One is $12k on a 5 year repayment plan. Other is $52k on a 10 year repayment plan. Thinking between the 2 options, which is better

VOO, VTI or ARKK for first investment in Roth IRA? 23 years old for context.

likehelpful

I am looking for reliable property managers that help with buying and renting investment properties in the following cities. If you have had a good experience with any, please share.

Boise, Idaho
Atlanta, Georgia
Dallas, Texas
Orlando, Florida

like

Investor’s Business Daily: worthwhile?

like

People investing in rental real estate what’s your ROI this year? My profit divided by current value is barely above 3% (and that’s with no renovations and 100% occupancy). Should probably sell it and invest elsewhere...

like

Can you withdraw money from 401k? What the penalty and how to find out?

like

Am I too late to buy a house now? Sitting on 300k of cash equivalents and want to use that as a down payment. Is there even a tiny hope for market correction in near term ?

like

If you have a side gig/small company that you run while working as a consultant, how much extra compensation does that bring you in each year, on average?

like

Well. ARKK is back.

likefunny

Looking to diversify my large cap tech concentrated porfolio. Is this a good time to enter into some international equity etfs? If so, which ones are you in?

like

Looking to invest in some new stocks. Any recommendations? TIA

like

I’ve seen a couple posts lately with comments saying that people should not use a Roth 401k. Does the logic below capture the spirit of that concept?
1. Use trad. 401k to reduce taxable income now. Convert to trad. IRA once retired, then convert gradually to Roth IRA (ladder, SEPP, etc.) at lowest marginal tax rate
2. Use Roth IRA (and/or backdoor Roth) to take advantage of tax free growth and ability to withdraw principal early without penalty

like

Should be close to breakeven after todays market gains (Invested around 60k during early days of market decline). How many of you are thinking about pulling money out today?

like

Recently switched jobs and need advice on 401K.

1) I have both Roth and traditional 401K. Can't change traditional 401K to Traditional IRA as I backdoor Roth and it complicates things.
2) does it make sense to move Roth 401 to Roth IRA to save on fees / have more options?
3) what would you invest in?

Current allocation:
FID 500 index (FXAIX): 58%,
FID Target 2055: 26%,
FID growth CO K6 (FGKFX): 12%,
FID bond - 4%

like

Do people use their HSA to actually pay for health expenses or just as a triple tax advantaged savings account for retirement? Seems like all talk on here emphasizes the tax benefits of it, so I am curious if people use to spend or just save

likehelpful

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal