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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: maginvizIZ on December 17, 2019, 10:50:20 AM

Title: Convert 2019 Roth IRA contribution to Traditional IRA?
Post by: maginvizIZ on December 17, 2019, 10:50:20 AM

Hello!

https://www.madfientist.com/traditional-ira-vs-roth-ira/

I just read this article, and feel like doing a traditional IRA makes sense for me.

Salary = $85k + $15k bonus
Expenses = ~$20k

I've been contributing to my roth IRA for the last 8 years...  Because Dave Ramsey told me to.

Is it possible to switch my 2019 contributions from roth to traditional?  Is it bad to have both a traditional & roth IRA if i plan to do the roth conversion ladder in ~5 years? 

Would you make this switch for 2019 or do I simply start a traditional IRA starting 2020?

Title: Re: Convert 2019 Roth IRA contribution to Traditional IRA?
Post by: EvenSteven on December 17, 2019, 11:26:01 AM

Do you file taxes as single?

If so there is an income limit for being able to deduct traditional IRA contributions. The phase out starts at a MAGI of 64k.

Title: Re: Convert 2019 Roth IRA contribution to Traditional IRA?
Post by: MDM on December 17, 2019, 02:14:43 PM

Quote from: EvenSteven on December 17, 2019, 11:26:01 AM

If so there is an income limit for being able to deduct traditional IRA contributions. The phase out starts at a MAGI of 64k.

If covered by (in other words, had money contributed to) a retirement plan at work during the year.

IRA Deduction Limits | Internal Revenue Service (https://www.irs.gov/retirement-plans/ira-deduction-limits) has details.