WWYD with 70K? [What Would You Do]

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samruns
Posts: 1
Joined: Fri Jan 12, 2018 1:51 pm

WWYD with 70K? [What Would You Do]

Post by samruns » Fri Jan 12, 2018 2:02 pm

I am married and in my mid-30s. My husband is maxing out his 403B and 457. We are maximally contributing to our HSA. We have 529s on track to have $200K by the time each of our kids are 18 (don't plan to increase that). We have great disability and life insurance for my husband (primary bread winner).
I have a traditional IRA with $20K, my husband has an old roth IRA with $22K.
We have a $60K emergency fund.
We can't do Roth IRAs due to income level now.

Questions:
1)
I want to do back-door Roths for 2017 and then ongoing, but what do I do with my traditional IRA to avoid pro rata? I don't have access to 401K at work.

2)
We have an extra 70K at the end of 2017. My husband has some 1099s from contract work so what do we do with the extra $$? Solo 401K, SEP IRA, taxable vanguard account?

Thank you for your advice for this newbie!

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Earl Lemongrab
Posts: 5412
Joined: Tue Jun 10, 2014 1:14 am

Re: WWYD with 70K?

Post by Earl Lemongrab » Fri Jan 12, 2018 7:55 pm

Yes, a solo 401(k) might make sense. He can't do any employee contributions but should have some room for employer. There are some odd rules about 403(b) and solo plans, so hopefully those more knowledgeable will comment.

For you, you can either contribute to an IRA and just leave it there, or use taxable accounts.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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