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Question for the Money Doctors

Question submitted on Oct 8, 2019.


My wife is starting her residency soon and we are looking to invest in a Roth IRA for her. However, after residency we will have an income higher than the limit for a married couple. Is it wise to invest in a Roth for 3-4 years and stop and then invest in a different way or to start to invest in a different method other than a Roth from the start? I know we will be at a lower tax bracket now, but I'm concerned about limiting our ability to pay into the Roth after 3 or 4 years. Thank you.


That's a great idea!   Keep investing in the Roth IRA until you are no longer eligible to contribute.  Nothing wrong with that.   If you both qualify, that is a total of $12,000 per year.  If you can do it for 4 years, then that is $48,000 invested in the Roth IRA.

When you are making more money, then you will be in a higher tax bracket.   At that point it makes sense to take full advantage of the tradition 401(k) or 401(k) retirement plans.   You will reduce your taxable income.  The current maximum is $19,500/yr.

The key is keep contributing!

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