Congratulations on your portfolio increase since your Sept. 2023 portfolio review.
Regarding your emergency fund, consider:
1. Reducing the # of financial institutions/accounts you are using to simplify.
2. Using a portion (as it is yielding <3.49% after tax) to pay off your 3.49% car loan.
Your retirement contributions are higher than your spouse’s. Consider using the $600/mo extra to contribute to a Roth IRA for spouse and to start the 5-year clock on initial Roth IRAs.
With a $101k 529 balance for a 4-year old, consider redirecting your $550/mo in 529 contributions to Roth IRA contributions.
Have you looked at the Form 1040 AGI impact of spouse’s 2025 salary increase? If you are getting close to the limit for direct Roth IRA contributions, consider rolling over your/spouse’s TIRAs into the TSP so you can do backdoor Roths without being subject to the pro rata rule.
Will you and spouse have pensions and/or SS benefits?
I really appreciate the insight and ideas. Forgive me for my ignorance but I know just enough about backdoor Roths and the Pro Rata rule to make myself sound stupid. The bulk of the IRA's between me and my wife are actually rollover's from previous 401k's - does this change anything if I was to pursue what you said? If it doesnt; does that mean i can take all our current TIRA's and roll them into our respective TSP Roth accounts with no tax implications? Again, sorry if I sound stupid.
Statistics: Posted by VVenti7401 — Mon Dec 09, 2024 10:51 am — Replies 8 — Views 691