Anonymous wrote:You didn't quality for Roth before on your own? Like two people wasted their chance to max out Roth for 30 years?
Get a tax book and see what you can do between all those accounts.

OP here. We exceeded the income limit for Roth contributions since we started working. Back door Roth contributions seemed a bit shady (to me) until it was recently clarified. We have both been doing the back door Roth contributions for several years. Do I wish we started Roth contributions earlier (we have about $100,000 in Roth now). Sure. But I think we have done ok saving. We have been maxing out 401k plus back door Roth contributions.

We will likely continue regular 401k contributions and plan for Roth conversions when we retire until RMDs kick in.

The pros are the country is running a big deficit so any extra tax $ you could send our way will reduce our borrowing.

You didn't quality for Roth before on your own? Like two people wasted their chance to max out Roth for 30 years?
Get a tax book and see what you can do between all those accounts.

This doesn’t make sense. But I am also confused about your numbers. What about the other 4.4 million?

I did this but only because I intend to work to at least 70 and income would go up once RMDs kicked in.

Only if you think tax rates will go up when the Trump tax cuts expire.

Anonymous wrote:Cons are you're investing 65c instead of a dollar. Pros are you won't be bored anymore?

Why not get the substantial tax savings now, and just convert when your tax bracket drops in 3 years?

Whether it’s 65c vs a dollar depends on whether OP is constrained by funds or by the contribution limit. If OP has plenty of funds, the ROTH cap is the same dollar amount so maxing ROTH has more value since it’s already been taxed

If you retire at 59 and wait till 70 to take SS to get max payment you have a decade to pull money via RMDs while in a low tax bracket.

If you spouse is younger maybe a bit more till two SS checks kick in.

Would you max out the Roth and invest money you would otherwise spend? Do you plan to move to a high tax state in retirement? If not I can’t think of a reason to do this.

Anonymous wrote:

Anonymous wrote:Cons are you're investing 65c instead of a dollar. Pros are you won't be bored anymore?

Why not get the substantial tax savings now, and just convert when your tax bracket drops in 3 years?

+1
Can't think of a reason why it makes sense to contribute to a Roth now given your high marginal tax rate. If you want to reduce your traditional IRA balance (which you likely should) you will have to do some aggressive Roth conversions.

+1

You can also stop working now and start Roth conversions. DH and I plan to stop working at 57/53 and doing 5 straight years of Roth conversions before second pension begins.

Anonymous wrote:Cons are you're investing 65c instead of a dollar. Pros are you won't be bored anymore?

Why not get the substantial tax savings now, and just convert when your tax bracket drops in 3 years?

+1
Can't think of a reason why it makes sense to contribute to a Roth now given your high marginal tax rate. If you want to reduce your traditional IRA balance (which you likely should) you will have to do some aggressive Roth conversions.

Yeah I don’t think that’s smart. At 59, you still have 16 years RMD kicks in at 75. Plenty of time to convert then

Cons are you're investing 65c instead of a dollar. Pros are you won't be bored anymore?

Why not get the substantial tax savings now, and just convert when your tax bracket drops in 3 years?

I am contemplating changing my 401k contributions to Roth 401k offered at my job. I am 56 and plan to retire in 3 years. Combined, we have about $5.5 million in 401ks (including my 457(b)). We have about $1 million in taxable and about $100,000 in Roth accounts. I plan to start Roth conversions when we retire.

I am thinking of changing contributions to Roth, even in my current tax bracket. Just for some additional tax diversification, paying some of it now while I am still working.

Any thoughts on pros and cons?