Personal Investments • Backdoor Roth and Magi for engaged couple

For 2024 money, I’m telling him to open a traditional and recategorize the funds like she does already, . . .

I assume you are telling them to "recharacterize". That would make the contribution be as if it had been done to the Roth instead. That would be an error, just the same as if they knowingly contributed to the Roth when they knew their joint income would be too high.

Instead, for 2024, if he doesn't have any money in any kind of traditional IRA, he should do the same as she is doing: make a non-deductible contribution to a Traditional IRA, followed by a Roth conversion.

Point both of them to the wiki page. They will have to each fill out a Form 8606 each year.

Statistics: Posted by celia — Fri Jan 05, 2024 3:21 am — Replies 2 — Views 206

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