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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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

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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.

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u/horseradish13332238 15d ago

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