I'm trying to save what I can in the most tax efficient way.
Background: July 2020 - June 2021 will be my last year of training. I have a job starting July 2021 which will significantly boost my income - My marginal tax bracket will go from around 17% (federal and state) in 2020, to 30% in 2021, and then 38+% after that. I am a single earner for a family of 3 (maybe at some point 4). Have around 150k in student loans, at about 5.5-6% interest (but currently 0%), which I'll likely do a private refinance once the covid benefits are over.
For this coming academic (not tax) year, I think I'll have around 15k to save. My plan is to max out 2020 Roth for me and my wife, and then use the rest to pay for tax to convert my wife's rollover IRA to a Roth (so we can backdoor Roth the following years).
My current employer 403b doesn't have a match, so I am planning on NOT contributing at all. For the 2020 tax year, I'm just going to put everything into Roth. And then I figure I can max out the 2021 403b in my new job in the second half of 2021, so no point saving in the first half of the year.
Does this make sense? Anything I'm overlooking?
Submitted June 24, 2020 at 10:21PM by jashow https://ift.tt/2Z9hizg
