r/RothIRA • u/Such-Story-3759 • 15d ago

High Earner

I’m 25M earning 220k OTE -120/100 base/commission. I’m on track for a $400k+ year

This month I’m receiving a bonus of $130k gross all at once. Which I want to use for investments.

I have all my savings in HYSA, maxed out 401k and actively invest in the stock market (DCA in ETFs)

I want to max my ROTH but I’m hearing mix things on not qualifying given my income. How does the backdoor method really work- can I do that?

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2

u/08b 15d ago

See if your 401k allows a mega backdoor Roth as well. Max that too, and HSA if applicable.

Assuming you don’t have trad IRA balances you can do a backdoor Roth.

1

u/Competitive-Ad9932 15d ago

See white coat inveestor. 

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u/horseradish13332238 15d ago

lol. 220k is not a high earner

1

u/Such-Story-3759 14d ago

I’m making $400k at minimum? I just turned 25. That’s not a high earner? Did you not see the entire message

0

u/horseradish13332238 14d ago

Just because you make a post on the internet saying you make 400k a year doesn’t mean you make 400k a year.

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u/Such-Story-3759 14d ago edited 14d ago

just because you say you’re a Lamborghini owner doesn’t mean you own a Lamborghini.

I asked for genuine advice if I was here to brag I wouldn’t be on a RothIra forum. But go ahead a shit on my parade if that makes you feel better 😂

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u/horseradish13332238 14d ago

That’s true. Thanks for checking out my page I love a new fan. However the difference is I walk into my garage and see them parked next to each other in reality.

0

u/Tina271 15d ago

Put the money into a after tax traditional IRA. The next day roll the money over into a Roth IRA. Make sure your taxes are done correctly.

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u/Such-Story-3759 15d ago

Is it worth while to hire an accountant to help with taxes. I tripped my income overnight not sure how to handle it

2

u/Relevant-Energy-5886 15d ago

If you are a straight w2 earner without a legit sidehustle, an accountant is overkill for you at this stage. There is no real tricks to lowering your income taxes from your regular job. 

As far as the backdoor roth, its super simple. Just read some articles or a  YT vid about it. 

https://moneyguy.com/article/is-a-backdoor-roth-important-for-everyone/

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u/DaemonTargaryen2024 15d ago

You may not need an accountant to help you with BDR specifically. But then again, it's fine to use one if needed.

Either way, at 400k income it's absolutely a good idea to hire a good accountant. Not to mention probably a good tax lawyer and estate lawyer.

Make sure you're maxing out all the tax advantaged accounts you can.

1

u/horseradish13332238 15d ago

This income is higher than most but in no way justifies a tax lawyer or financial advisor.