[‎‎‎‎‎‎‎‎‎USER]

I need a recommendation on my Roth investments.
We are 51 and 48 with a combined annual income of around $350k.

We anticipate retirement in 9 years, with our income expected to stay at current levels during this period.

We are unsure about employment income post-retirement.

Our current investments (mostly in funds) are
Roth IRA: $145k,
Trade IRA and 401k: $2.1M
Taxable: $1M.

We both maximize our 401ks. My employer offers a Roth 401k, but I have never contributed to it. My spouse’s employer does not offer a Roth 401k.

Should I start contributing to the Roth 401k moving forward since our overall Roth accounts are only around 5% of our total net worth?

I am concerned with the high RMD in future.

Future expenses are expected to be around $200k

[Angelo]

Because you are in such a high tax bracket I think the traditional 401k makes the most sense right now. Any extra can go any the taxable brokerage.

Assuming your money is properly invested and the stock market behaves, I think you are much closer to FI than 9 years. Maybe like 4 or 5 years tops

[Scott]

You’re both at top tax brackets. A trad Ira is the way to go. I would stack your additional money into your brokerage account at this stage.

This allows you to defer draws on your trad Ira’s. When your income is low circa 9 years.

You can do trad Ira/401k conversions to your own Roth IRA. This tax game will suit you well.

Congrats, you’ll be set in9 years.

[Marc]

Given your age and traditional IRA balances, I’d max out the Roth 401(k) each year and then put the rest in taxable brokerage.

Otherwise, you’re going to be stuck with large RMDs and/or a bigger and bigger balance for ROTH conversions down the road

[Jason]

Have you honestly done a budget?
It seems like you are swagging it and thus falsely thinking you will need to work 9 more years.

[Luciano]

Due to your income max out your 401k, max out a roth ira and if there is any more funds left hysa or brokerage account.

9 years of good for the roth growth and other two.

[Nicole]

Absolutely, it’s uncertain what tax rates will be in the future. You might as well lock it in.

[Author]

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