u/nilly2323

Hi,

I am planning my IRA contribution for 2025 and want to make sure that I'm making the most beneficial and informed choice for my long term planning purposes.

My 2025 MAGI for Roth IRA purposes is 172k, so I know I cannot make a direct Roth 401k contribution. I know the backdoor exists, but I understand that holding a traditional IRA complicates/eliminates my ability to do it.

My understanding is that I can do the following:

1. Contribute to my T-IRA and grow that balance. I continue to be locked out of future R-IRA backdoors while I hold a balance in the T-IRA
2. Roll-in my T-IRA into my current 401k (if possible). This then allows me to do future R-IRA backdoors, which I would do with my 2025 contribution
   • Looking into this, I can Roll-in, but requires mailing forms and a process that can't be completed in the next 4 days. So if I do this option. I would likely make my 2025 contribution into the T-IRA, then roll the full balance into the 401k over the next month and set myself up for a 2026 contribution backdoor
3. Convert the T-IRA to R-IRA and accept the taxable event on the current $7k balance, then Backdoor the 2025 contribution into the R-IRA

Is my understanding of these options correct? Is there one that is advised by this community? Is there another option I am not considering or are there implications I have not thought through?

Additional Details:

Roth IRA: 16k balance

2023 Contribution: 6.5k

2024 Contribution: 7.0k

Traditional IRA: 7k balance

2022 Contribution: 6.0k

Traditional 401k (previous employer): ~40k

Traditional 401k (current employer): ~5k

Misc:

• 20's
• Single (no changes planned soon)
• No Property (no changes planned soon)
• I anticipate remaining above Roth IRA contribution limits for the foreseeable future
• I have a sufficient safety net where I would never (foreseeably) need to take a loan against a retirement account or early withdrawal (i.e. this money, whatever account it lives in, will never be touched until retirement)