[USER]

Me and my spouse are above the threshold for a Roth IRA. Whats the work around?

“What’s the best strategy for contributing to a Roth IRA if our income exceeds the threshold?

We’re interested in exploring legal workarounds, such as backdoor Roth IRAs, and would love to hear about others’ experiences or advice on how to navigate this situation effectively.

Are there specific steps or considerations we should be aware of when implementing these strategies?

Any insights on potential tax implications or long-term financial planning would also be appreciated.”

[Joseph]

Make sure your traditional Ira has an account balance of 0 by 31 Dec of the year you convert.

Contribute $7k non tax deferred into a traditional ira.

Convert to Roth IRA as soon as the contribution clears.

Once the conversion clears, invest money into preferred investment.

Backdoor Roth IRA.

[Jaricka]

If this may be referring to the income threshold, then evaluate if one or both of you are able to increase your pre-tax 401K contributions to reduce your MAGI.

Depending on if you file together or separately may determine if one or both need to do this.

And if you need the income you can pull back on your Roth IRA contributions without penalty.

[Author]

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