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Resident Investing (roth 401k vs pretax 401k

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  • Resident Investing (roth 401k vs pretax 401k

    I'm currently a surgical subspecialty resident trying to figure out investments for my wife and I during residency. We are currently contributing $11,000 a year to roth IRA's as well as to our 403b's and 401k's up to the employer matches. I currently have it set up so my wife and I stay just under the 25% income tax bracket (after deductions) because of our pretax contributions to the 403b, 401k, and HSA. My question is, would you all switch the contributions to roth even if doing so pushed us into the 25% tax bracket during residency? Thanks

  • #2
    Yes, I would.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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    • #3
      Yes.

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      • #4
        Keep in mind marginal tax bracket won't affect much money for you.

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        • #5


          My question is, would you all switch the contributions to roth even if doing so pushed us into the 25% tax bracket during residency? Thanks
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          Yes, because you are in a relatively low bracket compared to the bracket you will fall in when you are an attending. These are the years you want to fill up as much tax-free growth space as possible.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            Well it sounds like the consensus is that we should switch things up. My thought was that at retirement we would be withdrawing at the %15 bracket if we played our cards right. Sounds like most people think its better to maximize roth space now, however, before we're at our peak marginal rate. Thanks for the input.

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