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> live in an income-tax-free state
> make 100k+ from age 25-35
> contribute $18k+ to pre-tax 401(k) per year
> by using backdoors, contribute $40k+ to Roth IRA per year, all this money is already-taxed and available on demand
> quit
> have children, buy a house, contribute to college funds, all this tax-deductive life event stuff
> using the tax-deductions widen the 0% tax bracket as much as I can
> use the entire bracket converting 401(k) money to the Roth tax-free (when I quit, I'd have rolled the 401(k) over into a tIRA)
> that money will now never be taxed, even as it grows
> after five years, the converted money is available in case I need it
> once the 401(k) is empty, move to a high-income-tax state where goods and services are cheap
> slowly spend all the "contributions", which include all the backdoored capital as well as converted 401(K) money
> additional earnings become available to me at age 60
> social security at age 70
> haven't worked or paid tax in 35 years, still living the big life
America is fucking awesome.
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wew lad, should've bought bitcoin
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How do you contribute 40k to Roth IRA ?
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>>1697973
There are two backdoors, one where you contribute 5500 after-tax to a tIRA and convert, another where you contribute $36k after tax to your 401(k) then to an in-service rollover to your Roth.
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>>1697900
you forgot financial collapse by the bursting of the bond bubble. That pension money will evaporate.
But good work on moving to (or being born in) a 0% income tax place.
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>>1698342
Thank you. I moved here, from Canada no less.
A market crash is fine. It means I would want to go to work for a year or two, during the crash, to bolster my savings while stocks were cheap (and to avoid selling to pay for groceries).
Even in 2008, when the stock market took a ~50% hit, dividends took only a ~20% hit, so with careful allocations and a good safety margin I'd have been able to ride out the storm even without trading labor for income.
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>>1697900
How are you planning to afford a house? Living in a small town in a cheap state?
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>>1698857
Financing it over 30 years so that the cost is spread out and my capital base is never depleted enough that its payouts are less than my annual expenditures.
I may also be able to finance through my company, who will give me a very good rate. This is a common startup perk.
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>>1699016
>I may also be able to finance through my company, who will give me a very good rate.
How is that going to work if you quit your job? Finance then quit?
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So are you already 35 and you've done this?
Or are you just starting out and this is a story you've written about yourself in the future?
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