As an employee, I would consider maxing out the 401k total contributions of $22,500 or $30,000 for those over 50.

Trying to get to the $30,000 max on a $72,000 salary is difficult, but I think I will be able to do it this year.
No eating out or fancy trips that's for sure.
I'm already over 60 though, and planning to retire in ~3 years.

DouglasPearce said:

---

Ghost of Bisbee said:

---

DouglasPearce said:

---

Just fyi...you can still contribute to your Roth IRA via the backdoor regardless of AGI

---

How?

---

Just contribute to your regular IRA like normal, up to $6500 in 2023. Then set up a Roth IRA (which it already sounds like you have one), and transfer the funds from your regular IRA into your Roth IRA.
If you have funds in your regular IRA from previous years you will owe taxes on that conversion into your Roth, this is called the pro rata rule.
Try googling The Backdoor Roth IRA and you'll find great info on the process.

---

I don't think you can be correct in all cases about what you typed in stating regardless of AGI you can use the Roth-

The Roth IRA has an income limit to be able to qualify:

"Above these incomes, the amount that you can contribute to a Roth IRA begins to phase out.

In 2022, individuals whose MAGI is $144,000 and above ($153,000 in 2023) and married couples filing jointly whose MAGI is $214,000 and above in 2022 ($228,000 in 2023) cannot contribute to a Roth IRA."

You don't understand how a backdoor works. It's specifically used to get around the AGI limits.

LMCane said:

---

DouglasPearce said:

---

Ghost of Bisbee said:

---

DouglasPearce said:

---

Just fyi...you can still contribute to your Roth IRA via the backdoor regardless of AGI

---

How?

---

Just contribute to your regular IRA like normal, up to $6500 in 2023. Then set up a Roth IRA (which it already sounds like you have one), and transfer the funds from your regular IRA into your Roth IRA.
If you have funds in your regular IRA from previous years you will owe taxes on that conversion into your Roth, this is called the pro rata rule.
Try googling The Backdoor Roth IRA and you'll find great info on the process.

---

I don't think you can be correct in all cases about what you typed in stating regardless of AGI you can use the Roth-

The Roth IRA has an income limit to be able to qualify:

"Above these incomes, the amount that you can contribute to a Roth IRA begins to phase out.

In 2022, individuals whose MAGI is $144,000 and above ($153,000 in 2023) and married couples filing jointly whose MAGI is $214,000 and above in 2022 ($228,000 in 2023) cannot contribute to a Roth IRA."

---

Google backdoor Roth

EliteZags said:

---

Carlo4 said:

---

Maxing out the 401k always meant maxing out what the company would give you with your contribution from my point of view

---

this is still annoyingly baffling to me, wtf do you call 'really' maxing out 401K then?? SuperMaxing the 401k?

---

When you are poor as &*^% like I was at the time, it's just an expression on the phrase. It's the max I can do to get free money from my company. Now I think differently. You can say both and mean both based on what you can do. Thankfully, I can max contribute the full amount.

Roughly 15% of Americans can max the 401k, with virtually everyone making over $150k a year in the category. It's the internet and everyone here has a net worth of $50 million at 25, but everyone here is the exception and not the rule.

https://www.cnbc.com/2023/01/03/how-to-take-advantage-of-higher-401k-contribution-limits-for-2023.html

In reality, there is no real income limit. We've been "limited" by income for several years and have been contributing to Roth all those same years due to the back door Roth option.

When the front door closes on income then you go around back and contribute via the back door doing what the post said that you quoted. And it's really easy to do.

You just have to be aware of certain tax implications.

Again, we really need a sticky on this forum for the Backdoor Roth. I'm still baffled by how many people don't know about it.