ROTH IRA - Question

[Monk-N-Dunk]

I just learned that if you file jointly, if you make a combined income of $191,000+ you can no longer invest your typical $5,500.

I am 28 and have been maxing my Roth since college.

My company doesn't match 401K.

My question is: Once me and my wife reach this level of income, where should I invest my normal ROTH IRA money? Traditional ROTH? 401K even though company doesn't match? Index Fund? Something else? 

[Horsesrus]

If your company offers a Roth 401k there are no income limits, but not many companies offer Roth 401k plans.  There are annual limits of how much you can put in either type of 401k but you can invest in both if offered.

[hog.goblin]

Do either of you currently have a traditional IRA?

[Arkansasbeaux]

If neither of you have money in a pre tax traditional IRA, then you can both do a non deductible contribution into traditionals and then immediately convert them to Roths. That is the back door method. However, if you currently have pre tax traditional IRA money, then it can still be done but there will be a pro rata calculation that has to be done. There is no income limitation on conversions. That's how my clients that make more than the limit are able to put the money into their Roths.

[Monk-N-Dunk]

Do either of you currently have a traditional IRA?

We don't have a traditional IRA at the moment. I have been debating if I should go the traditional IRA way or do the 401K (even though my company doesn't match) because I believe it's non-tax or something to that extent...

[Monk-N-Dunk]

If neither of you have money in a pre tax traditional IRA, then you can both do a non deductible contribution into traditionals and then immediately convert them to Roths. That is the back door method. However, if you currently have pre tax traditional IRA money, then it can still be done but there will be a pro rata calculation that has to be done. There is no income limitation on conversions. That's how my clients that make more than the limit are able to put the money into their Roths.

Oh wow, great advice! I knew I came here for a reason.

[hog.goblin]

We don't have a traditional IRA at the moment. I have been debating if I should go the traditional IRA way or do the 401K (even though my company doesn't match) because I believe it's non-tax or something to that extent...

My question here ^^^ was leading to this answer here:

If neither of you have money in a pre tax traditional IRA, then you can both do a non deductible contribution into traditionals and then immediately convert them to Roths. That is the back door method. However, if you currently have pre tax traditional IRA money, then it can still be done but there will be a pro rata calculation that has to be done. There is no income limitation on conversions. That's how my clients that make more than the limit are able to put the money into their Roths.