Backdoor Roth vs Roth 401(k): Which One Should You Prioritize?

by | Oct 13, 2022 | Backdoor Roth IRA | 9 comments

Backdoor Roth vs Roth 401(k): Which One Should You Prioritize?




Backdoor Roth vs Roth 401(k): Which One Should You Prioritize?
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9 Comments

  1. Andres Garcia

    Hi Money Guy, thanks for all the fantastic content. I'm over the income limit to contribute directly to a Roth IRA. Is it possible to contribute $500 monthly to a Traditional IRA and do Backdoor Roth conversion monthly? Thanks

  2. Daries Pietryka

    Hey I'm saving for a house but don't need the money for about a year do you think t bills are a better place to put my money safe they seem like better yeilds and tax benefits than mma cds or high yeild savings

  3. Financially Free Finally

    We’re doing both and with one of us 50+ we’re getting just over 60k+ in Roth 401k plus backdoor Roth BUT it’s because we already have a ton in pre-tax and we will be in the same (over 40 pct) tax bracket in retirement. It gets really specific and Reby has a great point in getting a co-pilot when you’re not sure.

  4. Luis Velazquez

    Hey @money guy show… does it make sense to temporarily SWITCH from ROTH 401k to Traditional 401k so you can have some extra cash to pick up more shares in an AFTER TAX brokerage during a BEAR market (assume I already maxed out BOTH spouses 401k, both backdoor ROTH IRAs, & HSA investing for 2022), currently at a marginal 28.5% (state & fed)????

  5. Tony Savickas

    As always good stuff.

    Many financial planners do nothing but sell expensive products.

    I'm confident your group is doing much more than just the average financial planner

  6. Chances

    I like this pep talk, Brian. Def maximize your strategy and try to do both.

  7. DobyDuke

    live off of dividend income, no worries if total value drops

  8. Joel Corley

    I'm surprised you don't mention that if she's just over the income limit for a direct Roth IRA, that maybe she should be sure she's making Pre-Tax 401(k) contributions to bring her taxable income down below the limit. If making Pre-Tax 401(k) contributions don't do the trick or if it's just going to be very close, then consider backdoor Roth IRA contributions.

  9. Grant Guy

    Brian's chin is bigger than jay leno.

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