So I guess the damage is already done, to the extent that my wife and I have contributed $11,000 to our Roth IRAs this year.
Problem is that our total AGI is going be higher than we anticipated, and may exceed $189,900 or even $199,900.
Reasons:
1) My wife received an unexpected $7000 bonus last month
2) If a big case settles at my office before the end of the year, I would be looking at a $25,000 bonus. I never thought this could happen, but now it looks like it might.
3) My novels are doing well saleswise, and I'm earning additional writing income (just $1000 so far, but probably at least $4000 more this year) from working with a new publisher.
For sake of argument, let's say that we can't keep our AGI under the income cap for Roth IRA eligibility...how can we "fix" this?
I've read that the best fix is to move the Roth contributions to Traditional IRAs, along with something called net income attributable (NIA)? Is that something I can just call Vanguard and ask them to do for me? I don't really understand the NIA part, and I'll have to read into that more. Plus, I understand that we still wouldn't be getting the tax deductible benefit of the Traditional IRA this way, but again I've read that it's the best "fix," given that we have already made our Roth IRA contributions.
Anyone have experience with this?
