I'll take a flier here and see if I can help figure this out.

You guys make $195,000 - $18,000(403b) = $177,000

Assuming 30% to taxes, that's $123,900

After $30,000 to your mortgage and car notes that's $93,900.

After the $24,000 e-fund/vacation fund that's $69,900.

I'm gonna go out on a limb here and assume all of your other bills are around $5,000/month.

So that leaves you with just under $10,000 a year to spread into some other retirement accounts. I would personally throw $4,500 each into a Roth IRA. You guys are right at the threshold for income limits, so I think you need to backdoor money into your Roth IRA.

At what point will the coffers be sufficient enough for your e-fund? Once you determine that, and set a goal, you might be able to adjust your retirement contributions one way or the other.

This post was edited on 2/4/20 at 8:24 am

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Posted by slackster

Houston

Member since Mar 2009

85143 posts

Posted on 2/4/20 at 8:39 am to TheWiz

quote:
So that leaves you with just under $10,000 a year to spread into some other retirement accounts. I would personally throw $4,500 each into a Roth IRA. You guys are right at the threshold for income limits, so I think you need to backdoor money into your Roth IRA.

A) assuming there is health insurance that has to come out of that gross, $10k is optimistic

B) once the health insurance comes out, their AGI is likely under the limit so no backdoor necessary.

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Posted by sonoma8

Member since Oct 2006

7672 posts

Posted on 2/4/20 at 8:41 am to TheWiz

Thanks guys. Like I said, we are planning on doubling up on our Roth contributions at the end of the year. So that will help. Im going to tweak our finances and see if I can add a few more % to my 403B. What would be a safe Efund amount? 3 months of bills?

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