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Roth Conversion?

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  • #16
    Hey all, I guess I have a fairly similar question. I have ~90k in a traditional IRA rolled over from my residency 403b. My wife has ~50k in traditional IRA from her prior employer as well. We are considering moving them to Roth and doing the backdoor contributions and maxing out both accounts annually.

    Before we do this we just want to make sure that this makes sense for tax purposes. From what I've read and heard through WCI and others I think this is the best strategy in the long run. In addition to this I am maxing my current employer 403b with match, and am debating opening a 457b and maxing that as well (it is non governmental and the way I understand it these are less... optimal). We also save in a taxable account monthly.

    Our pretax income is 415k and we file married filing jointly. I appreciate any insight.


    • #17
      I would not convert with 415k income


      • #18
        Unless your income is never going to be lower (including retirement), may want to wait to convert to Roth

        More impressive is 90k from residency.


        • #19
          Originally posted by Kennyt7 View Post
          I am more interested in the % of taxes I pay on my gross income. 20% effective is great
          Basing any decision on the effective rate is a behavioral finance error based on emotion. You only pay taxes at marginal rates.