I Already Funded My Roth IRA But My Income Is Over the Limit!
Take Your Finances to the Next Level ➡️ Subscribe now:
Download FREE Financial Resources from the show ➡️
Sign up for the Financial Order of Operations course ➡️
Download The Money Guy Net Worth Tool ➡️
Our professional focus is on financial planning and investment management, and we leverage our knowledge for your benefit. We help you focus on the things you can control and manage the things you can’t. Visit our site for more info ➡️
Facebook:
Instagram:
Twitter:
TikTok:
Let’s make sure you’re on the path to financial success – then help you stay there!
The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW!
We can’t wait to see you accomplish your goals and reach financial freedom! New shows every week on YouTube and your favorite podcast app. Thanks for coming along on the journey with us….(read more)
LEARN MORE ABOUT: IRA Accounts
INVESTING IN A GOLD IRA: Gold IRA Account
INVESTING IN A SILVER IRA: Silver IRA Account
REVEALED: Best Gold Backed IRA
Hi, I filed a tax extension and now my $6000 contribution is worth less than that now. Do I withdraw the full $6000 and eat that loss or withdraw the Net Income Attributable (~$5700ish)?
Great answer! I may run into this scenario as well and the annual contribution after you know your MAGI is a great way to avoid this issue,
Sounds like with those people nearing the limit an idea to do is just put that money into a savings account and at the end of year you can see if that money can go directly to your ROTH or consider the back door ROTH
Come on IRS allow Roth contributions regardless of income, make it simple and easy for citizens to invest, that way investors can take care of themselves at retirement instead of needing the govt to do so
Thank you for taking the time to answer this question and for stating your opinion about it.
Bo! Great advice to do it at end of year. It’s a different mindset than putting monthly chips in the pot, which many do.
Awesome video!! I have one question:
Say you’re making $500/month contributions to your Roth IRA and have to undo those contributions BUT those $500/month investments have LOST value. What happens then?
Is it not true that this years roth contribution limits base off of last years AGI?
Thanks for taking this question! It’s possible I’m going to run in this issue myself this year
How can you max a 401k Roth and simultaneously a traditional Roth. I’m guessing 3k each for max 6k
I had this happen a few years ago, and I just reclassified it as a Traditional IRA. I’m now in the process of doing Roth conversions to setup for backdoor Roths moving forward.
I will over the limit this year, so I decided to contibute to my 401K Roth IRA, No tax deduction but that's ok. I have too much in tax deferred accounts and want to limit the tax bomb in retirement.
That's what a taxable brokerage account is for. Make your Roth IRA contributions once the year is over and you know your modified adjusted gross income, during the 3 month window from January – April 15th.
What's the limit on backdoor contribution? $6K?
I really hope the backdoor roth stays around. Wife and I max out both each year.
The fine (if you are caught) is actually very minimal by the way.
Couldn’t you also leave it alone and pay the penalty, a max of $360?
You just couldn’t contribute the next year, though couldn’t you again contribute in year 3 (and pay one-time penalty)?
Perhaps he takes out 2021 principal but puts it in this year at the discounted market prices.
The potential long-term gain on ‘buying low’ seems too good to squander over a $360.00 one-time hit (for 2022 tax year)
If you are close to the cutoff, why not just do a backdoor Roth either way? Then you are ok both above and below the contribution limit.