Can't wait for the financial webinar series to become available for purchase. In the meantime, I just need some simple clarity. Situation ... 48yo private MD in a LLC with current income $500K. Wife is stay-at-home-mom. I contribute $54K yearly to 401K and invest the rest in a taxable account. Kids 529 plans are funded.
1. I have never thought of opening a traditional IRA and funding it yearly ($5500) but I CAN do this even with my 401K and the investments inside will grow tax free until funds are taxed at my fed rate when removed (although I CANNOT deduct this amount ($5500) from my taxes as I could if I did not have the 401K), correct?
2. Once funded I could then follow the backdoor Roth IRA steps for myself (even with my 401K) without penalty or taxes, correct? These proceeds will grow tax free inside of the Roth AS WELL as are tax free when removed at retirement, correct?
3. I have never opened a traditional IRA for my wife since she did not work, however I can open a traditional IRA and fund that yearly ($5500, although this is nondeductible) ) and then convert that to a backdoor Roth IRA without penalty or taxes?
I really appreciate WCI as I have taken poor financial advice years ago and have never thought of owning a Roth or spousal IRA since I am the breadwinner with a 401K. TIA !!!
1. I have never thought of opening a traditional IRA and funding it yearly ($5500) but I CAN do this even with my 401K and the investments inside will grow tax free until funds are taxed at my fed rate when removed (although I CANNOT deduct this amount ($5500) from my taxes as I could if I did not have the 401K), correct?
2. Once funded I could then follow the backdoor Roth IRA steps for myself (even with my 401K) without penalty or taxes, correct? These proceeds will grow tax free inside of the Roth AS WELL as are tax free when removed at retirement, correct?
3. I have never opened a traditional IRA for my wife since she did not work, however I can open a traditional IRA and fund that yearly ($5500, although this is nondeductible) ) and then convert that to a backdoor Roth IRA without penalty or taxes?
I really appreciate WCI as I have taken poor financial advice years ago and have never thought of owning a Roth or spousal IRA since I am the breadwinner with a 401K. TIA !!!
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