IRA vs Backdoor Roth

[ambesima]

Hey guys
I am still struggling with whether to do TIRA or backdoor roth. Just out of residency last yr. Did roth plus max out 401K. Going aggressive with Sofi refinanced student loan.

401K: 42k
Roth: 11000
Married with no kids.
Income 325K

Still not sure which will be the best for me. Anyone having the same problem?

[DMFA]

If you have a 401(k), then at that income you can't deduct traditional IRA contributions ($119,000) and can't contribute directly to Roth ($184,000), so the only worthwhile option is to do Backdoor Roth.

[Peds]

This is simple. You can't do a deductible tIRA. So backdoor it is.

[ambesima]

Oh thanks DMFA. Did not know I couldn't deduct TIRA. That makes the decision easy.

[DMFA]

Yep. You can only deduct with no income limit if neither you nor spouse have an employer (or self-employed) plan...and if you don't, then the best solution isn't to deduct your TIRA contribution, it's to get an employer plan.

https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

[ambesima]

Great!!! Thanks guys.