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Reply to "Why is the Annual Retirement Contribution Still Maxed at $18.5k?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous] What are the tax advantages of investing in an IRA if you max out your 401k? Other than a backdoor Roth, that is? [/quote] Tax deferral. But, of course, you are trading off getting your retirement income taxed at ordinary income rates rather that at potential capital gains or qualified dividend rates.[/quote] Peace of mind, Husband and I max out both Roth 401Ks and Backdoor Roth IRAs every year. The more I can funnel into designated retirement accounts the more secure I feel. There is a massive debt bubble obligation the US will need to face at some point, and our UMC income will be the primary target for revenues to pay off this debt. Just hope I can retire before that day comes.[/quote]
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