Hi all. After reading/searching on here for the best way to minimize tax with retirement accounts I have become confused. I read about backdooring a Roth IRA and that started my search. We both are 29 and want to retire early; before 50. We could live off of$40k/year. In 2016 we grossed $175k; I don't see this dipping below $150k anytime soon. I had much overtime in 2016.
Our house will be paid off in July and we will then push our new savings to an investment account. We will have 6 months expenses in cash.
Here's our contributions:
How should we invest now to maximize our tax savings?
Should I max out my Simple IRA instead of putting the other ~$7,500 in an investment account?
Would it be better if we contributed to a traditional IRA instead of a Roth IRA?
So would it be beneficial to load up the tax differed accounts now and convert money to a Roth IRA year by year? We would be in a lower tax bracket.
P.S. I hope I am being clear, this is a little confusing to me.
Our house will be paid off in July and we will then push our new savings to an investment account. We will have 6 months expenses in cash.
Here's our contributions:
- Wife maxes out 401k
- Both max Roth IRA
- I contribute 3% to Simple IRA (work matches 100% up to 3%)
How should we invest now to maximize our tax savings?
Should I max out my Simple IRA instead of putting the other ~$7,500 in an investment account?
Would it be better if we contributed to a traditional IRA instead of a Roth IRA?
So would it be beneficial to load up the tax differed accounts now and convert money to a Roth IRA year by year? We would be in a lower tax bracket.
P.S. I hope I am being clear, this is a little confusing to me.