I am planing to start maxing out my 401k this years and wondering if I should go roth or traditional or half and half. I plan to retire at around 50 years old and based on the trajectory, I will have around 6 million net worth outside my primary residence. TC: 220k, will probably be quite stable between 200 - 300k in the next few years. Any input is appreciated. P.s I don't plan to put in any money in backdoor or mega backdoor Roth plan. I am only willing to contribute 20k to 401k because I can't withdraw them until age 59.5 and I would love to have more other passive income stream built up between the gap of my initial retirement and 59.5.
If you aren’t doing backdoor, how do you plan to put money in Roth IRA? You make too much money.
You are very confused. You probably mean to ask about 401k contributions not IRA contributions. At your income level, you should go 100% traditional in your 401k.
Thanks for the input, changed title and question to 401k instead of IRA.
Do Roth 100%. Especially considering you live in a no income tax state right now. Assuming Seattle .
So based on 2019 tax bracket, I will be paying 35% on the fund I put in 401k if I do roth. I am thinking that about putting in traditional 401k for now and convert to Roth later.
Not a good strategy at all.
You are incorrect about not able to withdraw 401(k) there is more than one strategy to tap that money before retirement age
Can you shed more light?
I believe you can pull out principal but not earnings https://money.cnn.com/retirement/guide/IRA_Roth.moneymag/index5.htm.