I’ve already contributed $6,000 to my Roth IRA for the year. I’ve since gotten married last month and am now helping my husband set up his retirement accounts. He has a 401k, I do not (government job). I am salaried and my husband is hourly + commission. Halfway through the year it looks like we could exceed the income limit for Roth IRA contributions, especially if he continues doing well at work.
So really I have two questions:
1) for my husband (and for both of us in future years) is there any downside to just proactively doing backdoor Roths every January, other than having to fill out the 8606 with our taxes? It seems a lot easier than undoing the mess at the end of the year if our incomes exceed the $196k limit.
2) im not quite sure what I will need to do if we hit the $196k limit this year. I believe this is called a recharacterizarion but I’m not exactly sure what’s involved. I’ve already invested the 6k this year. How do I determine the amount of gains I need to recharacterize in addition to the 6k contribution?
Submitted July 10, 2021 at 08:18AM by StevenSnell3 https://ift.tt/2TNGYmD
