So the phase out for Roth IRA eligibility starts at $189,000 AGI for married couples filing jointly and ends at $199,000. For the first time in our married lives, my wife and I are projecting getting dangerously close to $189,000+ AGI. Yes, I can file this under "nice problems" to have, but it's still new for us. I have earned more bonuses at work than I normally do, and a side project (book) is doing better than I expected, so those are the reasons for the surprise.
I am on pace to earn about $120,000 at my law job (this includes projecting some bonuses)
She is on pace to earn about $55,000 at her job
So that's projected $175,000 income.
My new book has done well thus far, and I am projecting net income of around $15,000, but it could go potentially go to $20,000 if sales stay strong the rest of the year.
So total projected income of between $190,000 to $195,000
To get AGI, you just subtract a few deductions. Student loan interest is probably the only one there, so let's say $2,000.00 for that. So we're down to $188,000 to $193,000 for projected AGI. Again, in the danger zone.
Any suggestions?
1) How hard is it to "undo" a Roth IRA?
2) Would anyone suggest trying to defer a few bonuses at my work so that they are "earned" in 2019?
3) I could always buy a few more things for my writing business to get my net income down a bit, but I don't want to waste money just to lower AGI.
4) Any other thoughts?