Normally my income is way below the $125,000 limit for Roth IRA so I put in $6000 beginning of January. However with extra shifts, my total income this year is probably going to be somewhere $120-$130k. From doing research, if I go over then I can recharacterize my Roth IRA contribution as traditional, then backdoor it no problem while paying taxes on the gains. However, I might not hit the $125k limit.
Should I wait till the end of the year to see if I make <$125k so I don't have to backdoor? Or should I just backdoor now? Is there any downside to backdooring right now, even if my income is <125k? Or is it just about effort? Because if it is just about effort, then I might as well play it safe and backdoor now rather than end of December right?
Submitted August 02, 2021 at 12:37AM by HardGainer https://ift.tt/3fnni0p
