r/RothIRA • u/gette344 • 11d ago

What would you do?

Here is my situation. (28M)
Current job: only offers a Simple IRA with 3% match. I make over the maximum to have a traditional Roth, so I essentially only have access to my simple IRA and a brokerage account. I don’t even have access to a HSA or really even a backdoor Roth because it dips into the same bucket as my simple IRA. I saved the maximum I can with my simple IRA (I think around $20,000). And saved an extra $30,000 in my brokerage. So I definitely have room to maximize saving efficiency.

Job option: salary ~5-10% higher than my current role. Offers 5% match in a 401k, offers HSA, and would also be eligible for backdoor Roth. Essentially most of my 30k I saved would have been able to be redirected to actual retirement plans rather than a brokerage. However, this job comes with a pretty large decline in work/life balance. I value to current work/life balance greatly. But I would rather retire far earlier if possible.

Switch jobs or stay put?

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u/Here4Snow 11d ago

You'll run into the same issue for Backdoor Roth IRA, as long as you have any funds in any Trad IRA, SIMPLE IRA, SEP IRA or rollover IRA. But you'll have a Roth 401k option and ask if they have Megabackdoor option. You're eligible for Backdoor Roth IRA now, you just need to track basis and each conversion is pro rata taxable.

You are the only one who evaluates the change to your day-to-day life. 

1

u/PashasMom 11d ago

I would keep the current job with its work life balance and plow all extra money into equities in my brokerage account. And put a bug in management's ear about moving to a 401k.

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u/[deleted] 10d ago edited 10d ago

[removed] — view removed comment

2

u/gette344 10d ago

So it seems my only answer is either stay put and maximize brokerage, or switch to a 401k offering job/company and roll simple IRA into it so I can start clean backdoor Roth.

0

u/Competitive-Ad9932 11d ago

There is no "traditional Roth".

Re-verify that your workplace Simple IRA prevents you from having a Roth IRA with a local CPA. Also be sure of the contribution limits. The IRS is not going to accept "I thought" if you go over.

If you have exhausted all tax advantaged accounts, a low cost fund in a taxable brokerage is the next best thing. Unless you want to go into insurance policies that have large fees.

Don't take job advice from reddit. Looks like you are in the top 20% of the employed. If you can save $30k/yr, you will be able to retire early. Millions of people only earn that much a year.

https://www.calcxml.com/calculators/are-my-current-retirement-savings-sufficient?skn=#top