403b, 457b, HSA, ....what else?

[Craniofacial]

Hi- I am maxing out th above through my hospital employment...

can I open a traditional IRA and then convert to Backdoor Roth?

Husband is maxing out his TSP... what else should he be doing?

We have no children for 529. ????

[Dreamgiver]

Yes, backdoor Roth for you and your spouse. Plenty of threads on here to tell you the nitty gritty. Do you have an emergency fund? Insurance needs well covered? What kind of debt if any? If all else checks fine, taxable account would be next.

[Craniofacial]

Thanks

[jfoxcpacfp]

Agree with @dreamgiver. Next steps are:

• Backdoor Roth Explaining Backdoor Roths


• Taxable Account 11 Reasons You Need a Taxable Account

Probably goes without saying, but also a budget to manage your cash flow and implement future goals.

[adventure]

and an IPS. And decide what your goals are for the next 1,2,10,40 years. (okay for them to change. Good mental exercise here).

[Peds]

wait before you do any backdoor conversions. do you have any IRAs already (sep, simple, trad)? if not, carry on.

[AdamMGrossman]

If you are planning to have children, I would consider opening a 529 and starting to make small but regular contributions.  When you have children and/or if the stock market goes lower (allowing you buy at lower prices), I would step up those contributions.

529 accounts are great because they have the tax advantages of a Roth IRA but without the income limitations and with much higher limits on contributions.

[jfoxcpacfp]

AdamMGrossman wrote:

529 accounts are great because they have the tax advantages of a Roth IRA but without the income limitations and with much higher limits on contributions.

Click to expand...

Not so great if you overfund them. You can use a Roth for any purpose, but, of course, the purpose of a 529 is limited. It's a very delicate balance.

[AdamMGrossman]

I completely agree.  I didn't quantify it, but that's part of why I recommended small contributions to begin with.  Even when you have children, I would still target saving less than the full estimated cost of college, for exactly that reason: you don't want to overfund 529s.