Reply to Max out TSP, but make too much for Roth IRAs. How else do we save for retirement?

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Reply to "Max out TSP, but make too much for Roth IRAs. How else do we save for retirement?"

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[quote=Anonymous][quote=Anonymous]We also max out our TSP and husbands 401K.   If I am 42 and have about $200k in retirement, and my DH (43) has about $450k in retirement, should we still be trying to open a traditional IRA and then convert it to a Roth?  Or are we too old to try to do this?  
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If you make too much to contribute to a deductible IRA and you want to save more in retirement accounts then you are not too old.

The age thing might matter when you are deciding whether to convert an existing 401(k) and pay the tax on it (or even to choose whether to invest in a Roth IRA nstead of a deductible IRA), but if you are just looking for a place to save more money after you max out your 401(k) and you make too much to contribute to a deductible IRA then there's no reason not to do the traditional, nondeductible IRA-&gt; Roth approach because it is in addition to your other tax-deferred savings and it is &quot;free&quot; tax deferral (i.e., you have to contribute after-tax dollars to your IRA anyway, so why not make it a Roth so the withdrawals are tax-free?). One of these days Congress will get around to closing this loophole.  Just hope they don't decide to do some kind of surtax on Roth withdrawals in 20 years...

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