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.
- Oracle / R&DlHEA77You 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.
- Google / EngBluthsIf you aren’t doing backdoor, how do you plan to put money in Roth IRA? You make too much money.
- Microsoft am sjbgYou are incorrect about not able to withdraw 401(k) there is more than one strategy to tap that money before retirement age
- Google Uusl71I believe you can pull out principal but not earnings https://money.cnn.com/retirement/guide/IRA_Roth.moneymag/index5.htm.
- Intel / Enghw2swmorealso checkout this strategy: https://www.madfientist.com/how-to-access-retirement-funds-early/
- Do Roth 100%. Especially considering you live in a no income tax state right now. Assuming Seattle .