Thoughts on first year retirement strategy?
Is this a good strategy? I opened a Roth IRA and will contribute 6k this year before I become ineligible. I am also maxing out my Roth 401k (will yield about 16k post tax). Then I will roll over the Roth 401k to the Roth IRA. In a year I’d have 22k in my Roth IRA and could continue doing this. There are no fees or taxes on the Roth to Roth conversion. In future years I wouldn’t be able to contribute due to income limits but no such limit exists for conversions and my Roth 401k plan allows for the rollover so I’d be adding 16k or a number around there to my Roth IRA per year and benefit from employer matching, even though I’m not eligible for a Roth IRA. Please point out holes in this if there are any before I do this.
Fugiat voluptatem et vel. Nihil in dignissimos quo. Nihil nam iure commodi nihil et debitis. Quod ut voluptas laborum delectus est accusantium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...