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#2 never makes sense to me
I think doing backdoor Roth makes more sense than the deductible IRA if you think your salaries will grow to the point you cannot make deductible IRA contributions. You would not want the deductible IRA contributions to get in the way of doing a backdoor Roth. You may be able to move your IRA into your 401k, but things could change where you can't move the IRA to a different type of account.
The big picture with making any tax sheltered contributions is you are shifting tax payments to a time when they will be lower. There may be other considerations, but this is the big picture in my mind.
#2 never makes sense to me
I think doing backdoor Roth makes more sense than the deductible IRA if you think your salaries will grow to the point you cannot make deductible IRA contributions. You would not want the deductible IRA contributions to get in the way of doing a backdoor Roth. You may be able to move your IRA into your 401k, but things could change where you can't move the IRA to a different type of account.
The big picture with making any tax sheltered contributions is you are shifting tax payments to a time when they will be lower. There may be other considerations, but this is the big picture in my mind.
Statistics: Posted by mhc — Sun Feb 18, 2024 2:16 pm — Replies 1 — Views 73