Personal Investments • Is backdoor Roth IRA useful strategy for my situation ?

All, Thanks for your help with this question and all the knowledge shared.

I am 40yr old and here is my current portfolio. My spouse is 35 and she is a homemaker.

Expected Taxable Income for the year: $450K
I will be maxing out my 401K ($23K)
Tax filing status: Married filing joint
State: CA

Current Portfolio:

401K - $481K (about $420K in stocks, $60K in Tbills)
Roth 401K - 4K
Taxable Stocks - ~$1.22M
Taxable T-Bills - $381K
I-Bonds: $45K
Education Fund (529 + Taxable) - $76K
Spouse IRA - $25K ($11K before tax contribution, $1K after tax contribution)

Debts:

Mortgage - $932K; House value ~$1.25M
Monthly mortgage - $5156 (5.25% Interest rate)

While reading a tax planning article I noticed that it says Backdoor Roth IRA can be a useful strategy.

1) Is it useful for me to contribute to a backdoor IRA this year ? I expect my income to me in 450 to 500K range next year also
2) Are there benefits to contribute to Roth 401K instead of Backdoor Roth IRA ?
3) Can I contribute to Backdoor Roth IRA for my spouse also ? She has $1K after tax contribution, does it add any complication?
4) Is my cash portion of portfolio too high ?

Statistics: Posted by techinvestor23 — Wed Dec 04, 2024 12:53 am — Replies 2 — Views 223

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