For the past several years, my wife has worked for a company that gives her a SEP-IRA contribution. This is typically about $7000. In years past, I have converted this to Roth to allow her to do a Backdoor Roth as well. Of course that means we have to pay tax on the $7000 at our ordinary income rates (marginal rate 24%). I see this as a tax to pay ahead of time that "opens up" the ability to get more tax protected space for her (i.e., the Backdoor Roth).
I know there is no "right" answer here, so I'm just wondering what others would do.
Background: Married filing jointly, household income $280k/year, annual savings ~$125k/year ($36k taxable, $10k 529, backdoor Roth x 2, the rest pretax)
I know there is no "right" answer here, so I'm just wondering what others would do.
Background: Married filing jointly, household income $280k/year, annual savings ~$125k/year ($36k taxable, $10k 529, backdoor Roth x 2, the rest pretax)
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