I want to fully fund my IRA on the first of the year but im unsure if I will make over the income limit to fund the Roth. I have worked a ton of overtime at my job the last couple of years and had to contribute to the traditional and convert it. I feel like the OT is drying up where I work and I would rather not have to do that if possible and also don’t want to have to cover the Roth to a traditional and back to a Roth at the end of the year if I go over the income limit. So my question is would you fully fund the traditional and convert it right away , wait and see how things look around June to have a better idea on what Id make for the year or just fully fund the Roth Jan 1?
Traditional or Roth.
byu/Lil_Bobby_hill infinancialindependence
Posted by Lil_Bobby_hill
4 Comments
Do both for flexibility in the future
If you’re already comfortable with the backdoor process and you think there is a chance you’ll be over the income limit then just do the backdoor Roth. There isn’t really a downside other then the paperwork at tax time.
The backdoor is one extra step. I’d just do it that way to be safe if you dont have a pro rata issue.
Im trying not to have to pay taxes on the back door as well