my TC is 375k in seattle and i contribute 18k to 401k. Does it make sense to contribute to Roth IRA ?
I don't think you will be eligible. 203k AGI is the limit for being eligible to contribute in Roth IRA. I'm in same boat, looking for other options.
203k if you are married and 124k if single https://www.fidelity.com/retirement-ira/ira-rules-faq
Backdoor Roth IRA
Maxed out already
- Max out 401k - Max out HSA - Backdoor $6000 by rolling over IRA to Roth IRA - Mega Backdoor 10% of your post tax salary by contributing to post tax 401k and calling Fidelity to set up automatic conversion to Roth 401k
Backdoor ROTH IRA guide: https://www.physicianonfire.com/backdoor/
You can't withdraw your earnings before 60, so what's the point of Roth IRA? 1) You can always withdraw contributions from a Roth IRA with no penalty, at any age. 2) At age 59½, you can withdraw both contributions and earnings with no penalty, provided your Roth IRA has been open for at least five tax years.
Mega backdoor
One or two sentences?
Can you please explain how do to this? None of the articles on internet explains - which are the things one should be careful while doing this.