Yes I know I should’ve taken care of this earlier.
I am self employed and I do my taxes myself. Business wise, I am sure I have taken all of my deductions/expenses to reduce my personal profit/income to the correct amount; I couldn’t make it lower without lying. I am just wondering if there are any ways to reduce my AGI by at least $20,000 to be within the Roth IRA income limits.
From what I am finding, you can contribute to traditional IRAs for the previous tax year, but only if you created the account before December 31, 2025. I do not have any open investment accounts aside from a Roth IRA with vanguard and an Apple HYSA.
I am just wondering if there are any other options to invest my money “pre tax” for 2025 to be able to get my income down to be able to max out my Roth IRA. I do have at least $20k liquid to invest; I have more available if necessary.
Thanks
How can I reduce my AGI to be able to max out my Roth IRA for 2025 in March 2026?
byu/paris-hiIton inpersonalfinance
Posted by paris-hiIton
3 Comments
>you can contribute to traditional IRAs for the previous tax year, but only if you created the account before December 31, 2025
There is no IRS rule stating an IRA must have existed during the tax year for which you are contributing. You can open the account today and label your contribution as a 2025 prior-year contribution.
Just do backdoor Roth
Backdoor roth: https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/ https://www.whitecoatinvestor.com/fix-backdoor-roth-ira-screw-ups/
>From what I am finding, you can contribute to traditional IRAs for the previous tax year, but only if you created the account before December 31, 2025.
Where did you find that, because its wrong
If you are self employed you can do a solo 401k and max that out according to however you want to design it.
This would not work for the prior tax year so you will have to just do backdoor roth for 2025, but you can set it up for 2026 to be easier.