Wife and I are both physicians who just finished our residencies. This year, we anticipate our collective income to be around $350k (5 months attending salary + 6 months of resident salary) this year (so 33% marginal tax bracket). We each have about $19k in 403b accounts, so approximately $40,000 total. Is rolling over these accounts in our Roth IRAs the best logical move? In running the math, it seems like given the small amounts, the growth in a Roth vs Non-roth may be a wash, considering taxes. However, rolling over directly into a Roth allows us the options in the future to contribute more through the Backdoor Roth while avoiding any pro-rata issues.
I think the option of avoiding any pro-rata issues with regards to a backdoor roth in the future makes converting to a Roth now the best move.
I think the option of avoiding any pro-rata issues with regards to a backdoor roth in the future makes converting to a Roth now the best move.
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