Hi Mustachians,
Husband and I earn 250k gross per year. We currently max out our 401ks, do Roth IRAs through back door Roth (10000) and put the rest in taxable accounts. We don't have mortgages (don't plan on having one in the near future - read 4-7 years) and no other big loans in the foreseeable future. We are looking to FIRE in five to ten years max (depending on kid's educational plans). For the next year, my workplace is offering to do after tax 401k upto max of $53000.
Here are the choices as I see them:
1) contribute pretax 401k, Roth IRA and max out after tax 401k with the purpose of moving it to Roth IRA later.
2) contribute pretax 401k, Roth IRA and put the rest in taxable (Vanguard VTSAX mostly)
3) contribute pretax 401k, Roth IRA and do a split (fill after tax 401k with some amount, not the max)
What would you advise us to do?
Also if we choose 1, how would aftertax 401k to Roth IRA and backdoor Roth (traditional to Roth IRA) work together? Are there any tax implications?
Right now, for our Roth IRA, we put after tax money into traditional IRA and move it immediately to Roth IRA so we don't have any earnings
We don't have any money in traditional IRA.
All our retirement accounts are either 401ks or Roth IRAs.
TIA :)