Any advantage to IRAs if you are over the income limits?

[Anonymous]

Is there any reason to do a traditional or Roth IRA if your adjusted income is over the $115K limit? We max out our TSP (both feds) and am wondering if there is any reason to have IRAs.

[Anonymous]

Tax-free growth on your returns.

Roth IRAs are also the best way to save for childrens' college.

[Anonymous]

Anonymous wrote:Is there any reason to do a traditional or Roth IRA if your adjusted income is over the $115K limit? We max out our TSP (both feds) and am wondering if there is any reason to have IRAs.

A backdoor Roth IRA will give you tax-free growth on your savings.

[Anonymous]

OP here. Thanks.

[Anonymous]

Are you also over the 178k modified AGI limit for ROTH? Do you have money already invested in a traditional IRA (this can muddy the waters with a backdoor roth)?

[Anonymous]

Let's be clear about something: A Roth isn't for everyone. If you're in your peak earning years now you're probably paying at a higher tax rate than you will be in retirement, so it makes more sense to take income tax deductions now.

That said, in this case where deductions are not possible, getting to a backdoor Roth IRA makes sense.

[Anonymous]

Anonymous wrote:Let's be clear about something: A Roth isn't for everyone. If you're in your peak earning years now you're probably paying at a higher tax rate than you will be in retirement, so it makes more sense to take income tax deductions now.

That said, in this case where deductions are not possible, getting to a backdoor Roth IRA makes sense.

We have traditional IRAs for the tax free growth. We're in our peak earning years so we forego the backdoor Roth conversion. If I were 35 instead of 50, though, I'd do the Roth.

[Anonymous]

If you have the $, Roths are great for inheritance.