I am currently mid-twenties and have invested a significant amount in a Roth IRA but the more I think about it contributing to a Traditional 401k and converting it when advantageous seems like a better move. I plan on taking a year off eventually and have a business so there could be an event that reduces my income on paper. Is there anything I'm missing here?
- Contribute to Trad 401k (for tax deduction)
- Wait for a low income year, or artificially create one one on paper
- Convert in that low income year and pay taxes
- Wait at least 5 years before withdrawal of converted funds
Submitted July 12, 2023 at 06:08AM by jds1423 https://ift.tt/2yPgqWv
