I am interested in getting some advice on investing in tax-advantaged accounts. I currently max out my roth-401k (18k) and the company matches 9k pretax. I am currently single and so my tax rate is very high (my TC is 500k+ now). I read about mega backdoor roth and checked out other blind posts regarding this. A few questions if any of you could please answer:
1. Do you think mega backdoor roth is a better investment vehicle than investing in vanguard funds/other ETFs?
2. Is 18k (Roth) + 9k (pretax match) + 27k (mega backdoor Roth) better than 18k (traditional) + 9k (pretax match) + 27k (mega backdoor Roth)? I am thinking you can put in more money in tax-advantaged accounts in the former case but I might be missing something.
3. Is a 529 plan a better place to invest if you get state tax deductions?
The 27k mega backdoor can be invested in any ETFs you want, no?
529s: well, this is for paying for future education for your kids. You have kids?
Other tax protected investments to consider:
- HSA accounts
- "regular" Roth IRA backdoor: 5.5k. It makes sense if you don't have an existing traditional IRA.