Hello everyone. I am glad to be one of those people that got their financial awakening through the white coat investor.
Right now I am currently in private practice as a nephrologist. Well I do enjoy the job but I am using this time to also get my financial house in order. I Currently have a 401(k) since 2017 that I have maxed out and a traditional IRA since 2015. The issue for me is that during the years of 2015 and 2016 I was able to place the maximum 5500 and write it off since I did not have a 401(k). I contributed about $300 for 2017 before the 401k came into effect. I have contributed nothing since to the IRA.
The traditional IRA has about 16,000 in it right now ( contributions plus earnings ). However I am highly interested in doing a backdoor Roth IRA from this point on. I am in the 32% tax bracket for 2018, 28% for 2017. I know that for doing the back door Roth IRA I must have a zero balance in all other IRAs. The contributions and earnings from 2015 and 2016 (all pre tax) I want to roll into my 401(k) which will accept it. Then I want to finish making the nondeductible contribution for 2017 and roll it over into a Roth IRA. I do not want to miss out on being able to do a backdoor Roth IRA and contribute more to my retirement.
So my question is this ...
For filing for 2017 taxes am l better off just converting the whole thing into a Roth IRA and just pay the taxes on it? Then just do the Backdoor next year?
Should I proceed with just rolling all my pre-tax money from the IRA into my 401(k) and then make the maximum nondeductible contribution for the 2017 filing year and convert then? I am aware that I will need CPA help to calculate the exact pretax amount to move to the 401k.
Or do I just give up being able to do the Backdoor Roth IRA at all and just open up a taxable account next year?
Again I appreciate all the info and contributions from all the forum users
Right now I am currently in private practice as a nephrologist. Well I do enjoy the job but I am using this time to also get my financial house in order. I Currently have a 401(k) since 2017 that I have maxed out and a traditional IRA since 2015. The issue for me is that during the years of 2015 and 2016 I was able to place the maximum 5500 and write it off since I did not have a 401(k). I contributed about $300 for 2017 before the 401k came into effect. I have contributed nothing since to the IRA.
The traditional IRA has about 16,000 in it right now ( contributions plus earnings ). However I am highly interested in doing a backdoor Roth IRA from this point on. I am in the 32% tax bracket for 2018, 28% for 2017. I know that for doing the back door Roth IRA I must have a zero balance in all other IRAs. The contributions and earnings from 2015 and 2016 (all pre tax) I want to roll into my 401(k) which will accept it. Then I want to finish making the nondeductible contribution for 2017 and roll it over into a Roth IRA. I do not want to miss out on being able to do a backdoor Roth IRA and contribute more to my retirement.
So my question is this ...
For filing for 2017 taxes am l better off just converting the whole thing into a Roth IRA and just pay the taxes on it? Then just do the Backdoor next year?
Should I proceed with just rolling all my pre-tax money from the IRA into my 401(k) and then make the maximum nondeductible contribution for the 2017 filing year and convert then? I am aware that I will need CPA help to calculate the exact pretax amount to move to the 401k.
Or do I just give up being able to do the Backdoor Roth IRA at all and just open up a taxable account next year?
Again I appreciate all the info and contributions from all the forum users
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