This is the key, I have some old 401k's getting nailed with fees and do not think income limits will be a huge issue to directly contribute to Roth, but I can wait out the year and decide Jan 1 to see if I'm all clear for the prior year, that's what I was trying to say. I'll be in the clear for good several years from now, and over the next 2-3 I'm 90% sure I won't hit it. But I can wait until Jan 1 to decide on the prior year starting in Jan 2026 for potential 2025 direct Roth contributions (with having Trad IRA balances to negate Backdoor option).Huh? Not sure what this even means. But if you feel you are near the limit, just use the backdoor method....as early in the year as you want. However, if you roll a 401k into traditional IRA, the whole backdoor maneuver is made more complex and less attractive.On top of this, on years where I may not be sure I can wait until April 15th to contribute to Roth directly, as in for tax year 2025, if I fear the MAGI limit might be exceeded for direct contribution, I can simply wait until 1/1/2026 and figure it out then and I have until April 15, 2026 to contribute? Thanks.
Why not just leave the money in the old 401k? Or roll it into a new 401k or similar plan?
Statistics: Posted by deltaneutral83 — Fri Dec 13, 2024 8:37 am — Replies 4 — Views 313