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Manuela
I am married filing jointly. We are no longer able to contribute to a Roth. We are considering doing backdoor contributions.
I read a post on MMM about forgoing Roth and doing a Traditional IRA.
Sounds like if you will be retiring and your income might be higher in retirement then this is a better option.
What does this community think?
TIA
å¼ æ‰¬By Roth I assume you mean Roth IRA and not Roth 401k? If you can’t contribute to a Roth IRA (assuming due to income limitations), how will you be able to contribute to a traditional IRA?
If you’re talking about making non-deductible IRA contributions, those are definitely inferior to backdoor Roth IRA contributions.
LisaIf you’re going to make higher income in retirement, Roth would be best option now.
BrittanyWithout knowing more details, sounds like a backdoor Roth IRA is what you’ll want to do for your IRA.
You won’t qualify to do a deductible traditional IRA.
ChristopherIf you have a 401k available at work, and your income is that high, you may be phased out of traditional IRA deductibility too.
Traditional IRA isn’t a great fit for higher income retirement situations, since it’s taxed at withdrawal – high income retirement is where Roth shines.
RickIf income is higher in retirement, just retire now. You will have more money…
ChandraAre you or your spouse covered by a retirement plan at work? This would be a factor in whether you are able to make deductible contributions to a Traditional IRA.
JasmineJust do a back door Roth IRA. That’s what me and my spouse do now that we’re married.
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