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Personal Investments • To Roth or not to Roth

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I didn’t see your marital status, so assuming you’re single.

The ability to contribute to a regular Roth IRA starts to phase out when your modified adjusted gross income (MAGI) hits $138k for 2023 & $146k for 2024, if single. So subtracting your maximum pretax 401k contribution ($22.5k for 2023 & $23k for 2024) from your $160k gross income may bring your 2023 & 2024 MAGI below the maximum MAGI to contribute the maximum or a reduced amount to a Roth IRA. I believe there are some other work contributions/expenses that may reduce your gross income to get a lower MAGI. You may want to check “the google”.

Your $725k tax deductible rollover IRA would prohibit or make it very expensive to do a “backdoor” Roth IRA contribution.

You have until 15 April 2024 to open & contribute to a full or partial 2023 Roth IRA, if your MAGI falls within the acceptable MAGI range.

Edit: it’s your MAGI that determines your ability to contribute to a Roth IRA, not your taxable income.

bill

Statistics: Posted by billfromct — Sun Jan 21, 2024 7:25 am — Replies 7 — Views 927



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