Bigtime agree with this.Rem700 wrote: ↑Sat Nov 19, 2022 11:28 pmIf you are looking for more retirement savings. Use a ROTH IRA. You save after tax dollars, no tax deduction today. But as long as you wait until at least age 59.5 to start taking money out, then you get tax free growth on that money and get to pull it out tax free after age 59.5. Granted you have to be under the income limits for the year to save this way. You can put in up to $6k per year.
If you wanted to also do a traditional IRA. Again you put in up to $6k per year, you get a tax deduction for the contribution but when you start pulling money out in the future (after age 59.5 or you pay 10% penalty to Uncle Sam) it counts as ordinary income.
Step 1: push as much to your 401k as your employer will match (Do a Roth 401k if your company allows)
Step 2: Max your Roth for the year
Step 3: Go back to 401K and continue to pile on there
Step 4: if you have the money to pay the taxes, at the start of each year, do a Roth Conversion on the employer match of your Roth 401k (Employer matches are ALWAYS conventional. Only your portion can be Roth)
I've not been able to rock step 4 yet but I got the first 3 solid
Also Rem, check out a Backdoor Roth. If you make over Roth limits you can contribute to your conventional IRA and Roth convert it legally(another step I am not on or even close to).
