40-year-old, recently married. Wife and I both got laid off simultaneously and are both on track for salary bumps in our new roles, so good problem to have. This will be our first year filing jointly, and I've just realized that:
1. The married eligibility limit for Roth IRA contributions is not actually double the single limit.
2. Even with maxed-out 401(k) contributions and the mortgage interest deduction, we will be close to this limit.
I think as long as we both have and use our HSA space, paired with some tax-loss-harvesting space that I'll be taking over the next couple years, we have a shot at remaining eligible for all or most of the available space, but depending on bonus comp it's a dice-roll.
Does anyone have thoughts on often-missed opportunities to reduce MAGI? Would a backdoor Roth via a Traditional IRA be a viable option in conjunction with my 401(k) contributions? (Assuming no in-service rollovers enabling a mega backdoor Roth.)
1. The married eligibility limit for Roth IRA contributions is not actually double the single limit.
2. Even with maxed-out 401(k) contributions and the mortgage interest deduction, we will be close to this limit.
I think as long as we both have and use our HSA space, paired with some tax-loss-harvesting space that I'll be taking over the next couple years, we have a shot at remaining eligible for all or most of the available space, but depending on bonus comp it's a dice-roll.
Does anyone have thoughts on often-missed opportunities to reduce MAGI? Would a backdoor Roth via a Traditional IRA be a viable option in conjunction with my 401(k) contributions? (Assuming no in-service rollovers enabling a mega backdoor Roth.)
Statistics: Posted by Mister A — Sat Jun 08, 2024 2:53 pm — Replies 6 — Views 320
