ROTH IRA in last year of residency

[gasresident1]

Sorry I know this forum isn't meant for financial advice, but I was just wondering if anyone has gotten in trouble in the past for max-ing out heir ROTH in residency before they become an attending. I'm not sure if this is legal or not. For the tax year I'll be a mixed bag, so not sure how they calculate whether using a ROTH is legal or not. From January to June I'm employed as a resident on a $72k salary. From August to December I'll be an attending on a $485k salary.

Previously I've max-ed out my Roth as a resident every year. QQQ for the past three years and RPV this year. Thanks!

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[DrNut]

36k for 6 months plus 242k for the next 6 months will put you over for eligibility. If you don't have anything in an IRA right now, then do a back door roth ira.

Off topic, they pay that much in residency now? Was there a healthy bump to keep up with inflation?

 

[GassYous]

Call your provider and tell them you need to do a backdoor roth. You will probably not owe taxes because the amount is now probably less than how much you contributed if you did it in the beginning of the year. Submit form 8606 next year. If you have a sep ira or whatnot clear those out

More importantly get disability insurance now

 

[gasresident1]

OMG, you guys are the best. Thank you so much! Yes, and the new PGY4s will make 76k next year.

I'm assuming disability insurance is cheaper if you get it as a resident then as an attending???

 

[gasresident1]

I set up a traditional IRA on TD Ameritrade and will connect it to my Roth. There is a tool to back door it, so I will do it through that.

 

[GassYous]

OMG, you guys are the best. Thank you so much! Yes, and the new PGY4s will make 76k next year.

I'm assuming disability insurance is cheaper if you get it as a resident then as an attending???

Yes it is cheaper as a resident and when you are younger. Also your state matters if you're moving, for example if you're going to California you're in for a world of hurt.

If you have a family that depends on your income I would consider term life insurance especially if you're the sole breadwinner or have a family.

 

[spike7585]

Sorry I know this forum isn't meant for financial advice, but I was just wondering if anyone has gotten in trouble in the past for max-ing out heir ROTH in residency before they become an attending. I'm not sure if this is legal or not. For the tax year I'll be a mixed bag, so not sure how they calculate whether using a ROTH is legal or not. From January to June I'm employed as a resident on a $72k salary. From August to December I'll be an attending on a $485k salary.

Previously I've max-ed out my Roth as a resident every year. QQQ for the past three years and RPV this year. Thanks!

Nice salary for first year out!

 

[Mehd School]

Off topic, they pay that much in residency now? Was there a healthy bump to keep up with inflation?

I made $60k in my last year as a resident. Started at $52k. Only places I know that pay this much are in New York or Cali.

 

[nimbus]

I made $60k in my last year as a resident. Started at $52k. Only places I know that pay this much are in New York or Cali.

Yeah Stanford PGY1’s start around $80k/yr but that doesn’t go very far.

 

[GassYous]

Yeah Stanford PGY1’s start around $80k/yr but that doesn’t go very far.

That's good enough to pay rent with roommates as long as your boyfriend covers all other expenses

 

[abolt18]

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[nimbus]

That's good enough to pay rent with roommates as long as your boyfriend covers all other expenses

Incidentally that’s the same salary that 21yo graduating Econ undergrads get in SFO when they get hired by Bloomberg or HSBC.

 

[Status Sciaticus]

Oops, what if I already contributed the 6k to my roth and didnt think about this ahead of time. 50k from Jan-June, and production based (assume 300-350k august - december pretax). Will I be paying a penalty or can I move my monies into a roth 401k that my group also provides ?

 

[abolt18]

Oops, what if I already contributed the 6k to my roth and didnt think about this ahead of time. 50k from Jan-June, and production based (assume 300-350k august - december pretax). Will I be paying a penalty or can I move my monies into a roth 401k that my group also provides ?

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[Mehd School]

Oops, what if I already contributed the 6k to my roth and didnt think about this ahead of time. 50k from Jan-June, and production based (assume 300-350k august - december pretax). Will I be paying a penalty or can I move my monies into a roth 401k that my group also provides ?

You planning on making ~$800k your first year as an attending?

 

[abolt18]

You planning on making ~$800k your first year as an attending?

I assumed they were saying they would spend that 5 months working under a yearly salary of 300-350 (so 350*(5/12))

 

[Status Sciaticus]

You planning on making ~$800k your first year as an attending?

I assumed they were saying they would spend that 5 months working under a yearly salary of 300-350 (so 350*(5/12))

No no. He’s correct. Probably 50k as a resident for the first 7 months. Annualized 600-650k as an attending. Range in my group varies though. 400-700.

 

[GassYous]

Man tf are you hiring

 

[narcotics999]

so now new graduate gets 485K w2?