General situation: high income, high savings rate, solo 401(k)
Assuming one doesn't expect a massive increase in marginal tax rates at lower incomes down the road, am I correct that in the above situation, the backdoor megaroth really isn't likely to be a good option? One would want to use all of the $53K/year max toward tax-deferred (ie traditional employee + employer contribution solo 401k) contributions. The only exception would be if net income isn't high enough to cover the employer contribution all the way to 53K. Am I right? Missing anything?
Assuming one doesn't expect a massive increase in marginal tax rates at lower incomes down the road, am I correct that in the above situation, the backdoor megaroth really isn't likely to be a good option? One would want to use all of the $53K/year max toward tax-deferred (ie traditional employee + employer contribution solo 401k) contributions. The only exception would be if net income isn't high enough to cover the employer contribution all the way to 53K. Am I right? Missing anything?