traditional IRA vs taxable brokerage account

[kemi119]

we max out 401K account.

we do not qualify for roth IRA

Currently cant do a backdoor roth due to having a rollover IRA

Should I contribute to traditional IRA (even though there will be no tax deduction)?

OR just open a taxable brokerage account?

Any recommendation regarding using Vanguard vs Betterment?

 

Thank you

[The White Coat Investor]

You can do the traditional IRA in hopes that something else changes down the line allowing you to do the backdoor Roth IRA.

Better yet, start a business doing online surveys. Get an EIN (free and takes 5 minutes.) Make $10 off an online survey. Open individual 401(k). Roll rollover IRA in there. Do your 2016 and 2017 backdoor Roth IRAs. Sweet huh?

Not that a taxable account is the worst thing in the world. https://www.whitecoatinvestor.com/retirement-accounts/the-taxable-investment-account-2/

As a general rule if you can put together your own investing plan, use Vanguard. If not, then decide if a roboadvisor is enough help or not. If so, then use them. If not, get a real advisor.

The only real reason for a DIYer to use Betterment is because you believe the TLHing feature will be worth the 0.25% fee.

[triad]

The White Coat Investor wrote:

You can do the traditional IRA in hopes that something else changes down the line allowing you to do the backdoor Roth IRA.

Better yet, start a business doing online surveys. Get an EIN (free and takes 5 minutes.) Make $10 off an online survey. Open individual 401(k). Roll rollover IRA in there. Do your 2016 and 2017 backdoor Roth IRAs. Sweet huh?

Click to expand...

wow, can you really do that?  cool

[The White Coat Investor]

triad wrote:

The White Coat Investor wrote:

You can do the traditional IRA in hopes that something else changes down the line allowing you to do the backdoor Roth IRA.

Better yet, start a business doing online surveys. Get an EIN (free and takes 5 minutes.) Make $10 off an online survey. Open individual 401(k). Roll rollover IRA in there. Do your 2016 and 2017 backdoor Roth IRAs. Sweet huh?

Click to expand…

wow, can you really do that?  cool

Click to expand...

Sure, why not? There is no requirement as to how much profit our business makes. You just have to have a business to open an individual 401(k). Maybe I should do a post about it. I've got one this Friday that's related. Maybe I'll just add it on to that.

[kemi119]

Thank you for your respond!

I read that Vanguard solo 401K does not allow rollover. Is this true? I will have to look at fidelity.

[triad]

kemi119 wrote:

Thank you for your respond!

I read that Vanguard solo 401K does not allow rollover. Is this true? I will have to look at fidelity.

Click to expand...

I think fidelity only takes paper checks for their deposits and vanguard doesn't allow admiral funds or etf.  maybe schwab?

[The White Coat Investor]

I think I'd start mine at Etrade if I needed rollover capability and wanted access to cheaper Vanguard ETFs. But all of the big players' offerings have their pluses and minuses.