gregory r.
Dryer sheet aficionado
- Joined
- Jun 25, 2014
- Messages
- 41
DW & I are 55 y.o., thus far we have the vast majority of our investments in tax advantaged accounts (401k's, 401k conversions to IRA's) about 80% of total portfolio, the rest in a couple traditional IRA's.
The scenario: We want to further build our after tax accounts however we are at a combined income level that we cannot deduct any IRA contributions, nor can we open a ROTH/contribute to a ROTH if we did a "back door" conversion. We thought about converting one pre-tax funded IRA to a ROTH but, paying our tax rate of today on conversion amount verse our hopefully lower rate at age 59, we don't think there's enough time to build gains to make up the delta between tax rates. (unless we left it alone for 10-15 yrs)
Question: Are there any alternatives we are missing here? Am I stuck simply funding traditional IRA's with no immediate tax benefit and paying the capital gains rate upon withdraw? We're at a combined income of just under $300k I forget what our MAGI was last year but it did exceed all ROTH limits and regular IRA tax benefit limits. Any sage advice from some folks here would be most appreciated.....
The scenario: We want to further build our after tax accounts however we are at a combined income level that we cannot deduct any IRA contributions, nor can we open a ROTH/contribute to a ROTH if we did a "back door" conversion. We thought about converting one pre-tax funded IRA to a ROTH but, paying our tax rate of today on conversion amount verse our hopefully lower rate at age 59, we don't think there's enough time to build gains to make up the delta between tax rates. (unless we left it alone for 10-15 yrs)
Question: Are there any alternatives we are missing here? Am I stuck simply funding traditional IRA's with no immediate tax benefit and paying the capital gains rate upon withdraw? We're at a combined income of just under $300k I forget what our MAGI was last year but it did exceed all ROTH limits and regular IRA tax benefit limits. Any sage advice from some folks here would be most appreciated.....