Rave-Unicorn-Votive t1_jef2qdx wrote on March 31, 2023 at 3:28 PM

If you make too much for a direct Roth contribution then you probably make too much to deduct a traditional contribution so you'll be paying tax now regardless.

If you have no existing tIRA balances, just do a backdoor. The traditional vs Roth, now vs. later tax bracket analysis is more geared toward 401ks. Given the low contribution limit and the low income threshold/phaseout of IRAs, it's usually better to just go straight to a rIRA.

huntwithdad OP t1_jefbt7i wrote on March 31, 2023 at 4:27 PM

Makes sense thanks for the reply. Any tips on where is best todo the back door Roth? Was thinking fidelity since there name is brought up here a lot.

Rave-Unicorn-Votive t1_jefd5h7 wrote on March 31, 2023 at 4:36 PM

Fidelity and Vanguard are functionally equivalent. If you don't have any existing accounts that would make consolidating at one brokerage more convenient you can literally flip a coin.

Schwab is also in the same tier but I'm trying to preempt your follow up post asking "Schwab says I can make a 2024 contribution…can I?" (persistent website bug, gets asked here about once a week)

huntwithdad OP t1_jeg0dqc wrote on March 31, 2023 at 7:08 PM

Thanks that would be cool though if you could!