Been a busy year. Wife and I changed jobs, she worked a couple contract 1099's before getting something permanent (so no 401k), had a little bit of unemployment (which I forgot about), I got a bonus I wasn't expecting. Needless to say I made a mistake this year and forgot/miscalculated some things so now I think we are going to be stuck in a higher bracket. Facepunch!
Basically not enough into 401k, not enough itemized deductions. I think we are over by 17K. She has a IRA available to contribute to. 17K-5.5k = 12K I don't have an IRA, so the first question is can still open one this year and contribute to last year? If so then 12K-5.5K=6.5K, so we're still over by 6.5K.
Is there any other way to get last years AGI down after the 1st of the year like with the contributing to IRA's until April 1st? Or are we screwed? I have a feeling its the latter. I guess there is no way to backdoor a 401k, because that can only come from your check?
Its not the end of the world I do understand that only the amount above the tax bracket will be taxed at the higher amount, but I am still quite interested in my questions. Thanks