How to invest if maxed out 401k and Roth?
I want to invest in cheap index funds like VTSAX after maxing out 401k and Roth. What type of account should I open? Is Vanguard close to best option?
mega backdoor roth for an extra tax-advantaged ~25k
I have been trying to find out the answer to this exact question regarding a back-door Roth. I read a lot but am still confused. https://www.rothira.com/what-is-a-backdoor-roth-ira Can someone who has done a backdoor Roth help answer a few questions? 1) Can a married couple with TC ~$400K+ do a backdoor Roth assuming both people max out their 401K? 2) How does on open a qualifying account? 3) A post above says that it has to be available through an employer? I have both a Roth and Tradition 401K option, but the max seems to be $18.5K.
1. Nothing to do with it. Yes, you can. 2. For (Roth) IRA Just go to the website(e.g. vanguard) file a form. Like open any other account. For 401k, provided by your employer. 3. Roth and pre tax combined is limit to 18.5. After tax is capped 37k. I.e. there are 3 types of 401k. Not all employees provide all 3 options. Not all employees provide mega backdoor options.
If you just want to do backdoor , not maga backdoor, then anyone can just go open an IRA and a Roth IRA. Contribute to IRA and convert to Roth IRA. Limit is 5500 this year.
...a brokerage? You'll pay ordinary cap gainz taxes. I'm also assuming you max'd the backdoor Roth ($27k). Allocate after-tax money contributions to 401k then convert to Roth on a quarterly basis. If you don't know what I'm talking about, Google "backdoor Roth"
Not backdoor Roth. Isn't Roth cap 5.5k? How can I learn this step by step? What you said sounds hard!
It's really not hard. Google what I said, there's tons of info online about this. DM me if you have more questions