Background: 3 years post-fellowship. Already maxed out employer 401k with 50% match and additional profit-sharing into 401k by my physician group. I officially dumped my whole life insurance policy today (Thanks, WCI !!) and will be using those dollars to start and max backdoor Roths for both myself and my spouse (who doesn't work outside the home). Tallying up the dollars going into my 401k and the soon-to-be dual backdoor Roth IRAs, I'm approaching the 20% rule of thumb for savings of gross income - and that's all in tax-advantaged accounts. I do not as of yet have a taxable account.
Question: What if the Backdoor Roth goes away? I'm ~25 years from retirement and am just now opening my very first Roth account of any kind. If the loophole goes away tomorrow or in 5-15 years, I've still got a ways to go. What are my other options for tax-advantaged accounts?
- I'm peripherally familiar with the HSA / stealth IRA. For my family of 5, we actually use a fair amount of our contributed HSA dollars for healthcare expenses. Not sure I want to give up the tax efficiency of our family's healthcare dollars.
- My primary employer is the physician group mentioned above. I also have a 0.1 FTE appointment at a University/Medical School with an optional un-matched 403b. But after reading other articles on WCI, my take-away is that mixing 401k and 403b contributions still result in the same IRS contribution limit. Is that correct?
- Anything else? My wife does not work outside the home.
Or if the Backdoor Roth loophole goes away, should I just open a taxable account and adhere to the efficient tax practices delineated in other WCI / Bogleheads articles? I assume that all things being equal (in a world where backdoor Roth IRAs don't exist anymore), a taxable investing account is still better than a whole life insurance policy?
Thanks.
Question: What if the Backdoor Roth goes away? I'm ~25 years from retirement and am just now opening my very first Roth account of any kind. If the loophole goes away tomorrow or in 5-15 years, I've still got a ways to go. What are my other options for tax-advantaged accounts?
- I'm peripherally familiar with the HSA / stealth IRA. For my family of 5, we actually use a fair amount of our contributed HSA dollars for healthcare expenses. Not sure I want to give up the tax efficiency of our family's healthcare dollars.
- My primary employer is the physician group mentioned above. I also have a 0.1 FTE appointment at a University/Medical School with an optional un-matched 403b. But after reading other articles on WCI, my take-away is that mixing 401k and 403b contributions still result in the same IRS contribution limit. Is that correct?
- Anything else? My wife does not work outside the home.
Or if the Backdoor Roth loophole goes away, should I just open a taxable account and adhere to the efficient tax practices delineated in other WCI / Bogleheads articles? I assume that all things being equal (in a world where backdoor Roth IRAs don't exist anymore), a taxable investing account is still better than a whole life insurance policy?
Thanks.
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