So I was talking with one of my surgeons the other day and he said in passing “some people make too much to contribute to a Roth IRA”. It made me think and so I got to looking into it and sure enough I think I make too much… so what are other options I can do?
For context: single dad. Salary around 185k. Have a 401k from work, HYSA with about 30k (for emergencies), personal brokerage account I started last year with about 10k and currently do 400 a month, a traditional IRA (old 403b retirement account from first job) with about 60k and an older Roth IRA I started when my salary wasn’t so high and prior to my son with about 7k in it. Other expenses that limit the contributions I make is a mortgage, student loans, car payment and sons 529.
Cant contribute to a Roth… need advice
byu/Suture_Savant inpersonalfinance
Posted by Suture_Savant
2 Comments
> a traditional IRA
See Screwup #5 in the second link.
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Read this for everything you need to know about Backdoor Roth and Form 8606:
* https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/
Read this list of common screwups and solutions with respect to backdoor Roth. Beware of Screwup #5.
* https://www.whitecoatinvestor.com/fix-backdoor-roth-ira-screw-ups/
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You can still contribute to a Roth IRA, via the “Backdoor Roth IRA” method. It’s perfectly legal, and easy to set up.
The only problem that you might run into is the “pro rata rule,” which will come into play since you have an existing traditional IRA. IF your employer’s 401(k) allows rollovers to that from the traditional IRA, you can do that rollover, and then be fine to go with the backdoor method.