Hi everyone,
I was hoping to get your thoughts on how to spread our investments for the first year as an attending.
The private group has a self-directed pension plan that allows up to 54k of pre-tax investment (no match provided), thus lowering our taxable income. On the other hand, my wife and I have been doing 11k/year Roth IRA and wanted to keep that up. We also wanted to start putting away 6-7k/year in a 529 for our daughter.
Given the salary and our expected costs (including debt repayment), we will not be able to do all of these things. At first I was going to put ~20k into the pre-tax pension, max the backdoor Roths (x2, so 11k), and do the 529...
Now I'm wondering if we should just max the 54k of pre-tax pension to get the tax benefits, and skip the Roth/529 for this year. The following years my income will increase, and so we can start to add those in as we go.
Thoughts?? Max the pre-tax and skip post-tax investing for 1 year, or split our investing monies between the two?
Thanks!
I was hoping to get your thoughts on how to spread our investments for the first year as an attending.
The private group has a self-directed pension plan that allows up to 54k of pre-tax investment (no match provided), thus lowering our taxable income. On the other hand, my wife and I have been doing 11k/year Roth IRA and wanted to keep that up. We also wanted to start putting away 6-7k/year in a 529 for our daughter.
Given the salary and our expected costs (including debt repayment), we will not be able to do all of these things. At first I was going to put ~20k into the pre-tax pension, max the backdoor Roths (x2, so 11k), and do the 529...
Now I'm wondering if we should just max the 54k of pre-tax pension to get the tax benefits, and skip the Roth/529 for this year. The following years my income will increase, and so we can start to add those in as we go.
Thoughts?? Max the pre-tax and skip post-tax investing for 1 year, or split our investing monies between the two?
Thanks!
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