Mega backdoor Roth or Taxable account

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Topic Author
Posts: 188
Joined: Thu Mar 06, 2014 12:51 pm

Mega backdoor Roth or Taxable account

Post by vas »

I'm making the maximum contributions to my 401k, 401k catch-up, HSA, and backdoor Roth accounts. I can (but haven't so far) contribute up to 20% of my salary to a Roth IRA using the mega backdoor Roth technique. I probably will not save that much until the 529 is filled with an undergrad STEM degree, so I have more taxed advantage space than I am able to use. In this situation, is there any reason to utilize a taxable account for some savings? This is all retirement money so I'm thinking about tax diversity etc. Given the flexibility of the Roth I can see no reason to do so. Am I missing anything?
There is nothing you can't prove if your outlook is sufficiently limited
Bill M
Posts: 438
Joined: Sun Dec 30, 2012 10:10 pm

Re: Mega backdoor Roth or Taxable account

Post by Bill M »

I once had a financial planner tell me, "Don't do anything with everything." I think it was very very good advice.
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