I didn’t qualify for Roth IRA last year not sure if I will this year as my income fluctuates. I dumped 6k in 2022 Roth IRA, should I invest it all? what happens if I don’t qualify? You think I should wait until end of the year to see and then dump/invest?
This is a great question that I have wondered about myself… maybe the PFC team knows? or ask a CPA? Either way, my instinct would be to invest now (either in taxable brokerage or IRA), then clean it up later once you know your income level. Don’t let the uncertainty in tax situation disrupt your automated contributions/savings/investing.
Good luck!
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Some people do a backdoor Roth IRA. Interested to hear thoughts on this topic as well.
I am in a similar situation this year. I received a bonus closer to the end of the 2021 and it turned out I overcontributed to my Roth IRA. I have been investing in the 2045 Target Date index fund. I did a recharacterization to the tradition IRA and will later perform a Back Door Roth IRA conversion. Going forward, I plan to contribute to my Traditional IRA and then do conversion to my Roth IRA. My question is: Do I keep the money in the settlement account or can I invest in the same Target Date 2045 Index fund within the Traditional IRA and then convert to the Roth IRA?
Thank you.
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