[Betsy]

46 yo, married filing jointly, with our 2024 income crossing over the threshold for Roth IRA contributions. Got that sorted out for 2024 taxes but need some advice going forward.

I’m being advised to max out my 401k with a blend of traditional 401k and Roth 401k.

Previously I’ve been only utilizing traditional to reduce our tax burden. Suggestions on how to divide the 401k %?

Thinking that once that’s maxed, the next step would be a back door Roth.?

TIA!

[Rochelle]

All should go into a ROTH whenever possible.

You will be happy with no taxes when you retire and withdraw from it tax free

[Jeff]

At my company, the match is in traditional, so I put most of what I put in into Roth, so it’s a close to even split

[Peter]

You’re thinking right. I’d do mostly traditional if taxes are your main concern, but blend in Roth if you expect higher income in retirement.

Then yes—backdoor Roth once 401k is maxed is the move.

[Amber]

I max out the pre-tax 401k, but we also have a mega backdoor Roth opportunity at work, so I take advantage of that.

[Author]

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