Roth IRA availability for income reasons

Investing
#1

Happy new year team! I appreciate all the knowledge that you guys pass along to everyone trying to better themselves out here.

I have a quick question. Just like every year I would like to contribute the full amount of 6k towards my Roth IRA on Monday (First day that the market is open in 2022). Though, luckily my yearly income on 2021 is higher than the threshold for married couples that file together over 214k, to be able to contribute towards a Roth. That being said, granted that for 2021 I was able to invest the full amount of 6k, since I was under the income threshold, but now based on my income from 2021 I shouldn’t be able to do so. My question is, since taxes haven’t been filled yet for 2021. Can I invest the full 6k now for the 2022 year? Or does that rule apply to me in 2023 once the taxes have been filled?

As always thanks for your help :100:

#2

Probably a CPA question. My guess is you’ll probably have to go the “backdoor Roth” route of converting a non-deductible IRA to Roth.

1 Like
#3

You should check with your CPA. Keep in mind, your MAGI, is lowered by any HSA or 401k contributions as well. It’s a great way to save more and lower your MAGI to qualify for the Roth contributions.