Personal Investments • [49 years old] - $5M NW confused about Roth Conversion (worth it?) and if need CFP

Sorry if I missed this in a previous post, but regarding the IRA and conversions...I assumed that any conversion suggestion was simply related to "backdoor" possibilities, rather than a suggestion to actually convert the IRAs?

I'm confused by many of the OPs comments (and hi eoren1! Former physician here).

If OP can roll the IRAs into employer plans, they can then begin Roth IRA contributions via the two-step indirect backdoor method (that's a mouthful).

Questions for OP: Can you roll your IRA into your 403b? Is your wife working and if so does she have access to an employer plan that she can roll the IRA into?

If the answer is yes to each, OP can now get $15,000 additional yearly dollars into a Roth. Personally, I believe this extra Roth space is very valuable.

But if both spouses can't get their IRA into an employer plan, it's hard to imagine a situation where converting the IRAs to Roth IRAs is prudent.

But wait, OP wrote:

So given that the IRAs I have are non-deductible traditional IRAs....

I assume that's not actually the case and the OP mis-typed or misunderstood. But OP should confirm whether there is any previously non-deductible contributions in those Traditional IRAs. Depending on the amount, that changes the match.

Thanks Doc,

Sorry if my comments led to confusion - unintended but not unexpected as I have a decent but not great handle on some of these things.

As for the traditional IRAs. All I can say is that, when I log into Vanguard, they are listed as Traditional IRAs. Whether they are tax deferred or not, I'm unsure how to tell but assumed given a high income level that they were not. I put in the max each year ($7500 or so). The SEP-IRA amount is given to me by my CPA based on earnings from the side-gig.

Great question/suggestion on wife's 403b. It's a new job (second year there) and I don't think we have asked their HR about it. Could the 403b be an avenue to the Mega-backdoor Roth IRA?

What (exactly) should I have her ask HR?

Thanks again

Statistics: Posted by tibbitts — Thu Sep 12, 2024 6:24 pm — Replies 21 — Views 1037