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URL:  http://boards.fool.com/youve-got-the-right-idea-with-no-other-ira-30520037.aspx

Subject:  Re: Backdoor Roth IRA - Anything need to know? Date:  2/1/2013  3:35 PM
Author:  ptheland Number:  71326 of 76079

You've got the right idea. With no other IRA accounts, or SEP-IRAs, or 401k rollover IRAs, or any other kind of IRA account, the backdoor Roth is pretty straightforward.

Someone commented on keeping some traditional IRA money as well as the Roth. An excellent idea. But they forgot that you are also maxing out a 401k. And that works pretty much the same as an IRA for that purpose. So I'd stick with your plan of adding to the Roth.

On that front, the only other thing I'd add in is some after-tax savings. That give you three buckets to choose from in retirement: pre-tax IRA/401k money, non-taxable Roth, and ordinary savings/investments. And that should give you quite a bit of flexibility in retirement to control your taxes.


--Peter
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