Income 153-175k, depending on bonus
Single filer
I’m already maxing out my Roth IRA.
My employer puts 10% into my 401k for every 5% I put in, so I’m putting in 5% into traditional 401k right now while I replenish my cash emergency fund.
I have the option to contribute to Roth 401k instead of traditional.
My question is, when I have the bandwidth to max out the 401k again, should I be taking the tax deduction now and going all traditional, doing Roth conversions later, or doing a mix of Roth and traditional now?
Previously I was doing a mix of traditional and Roth, because I didn’t know about Roth conversions until recently.
I don’t really understand the mechanics of Roth conversions, probably why Im undecided here. When are they allowed and not. (While working? While drawing with a 72(t)?)
My current plan has me drawing 75-100k in retirement, which, if early as planned, will be ~10 years away. So Im paying the highest taxes of my life now, not in retirement.