Author Topic: Make too much money - Convert Trad IRA Cont to ROTH?  (Read 998 times)

CheapskateWife

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Make too much money - Convert Trad IRA Cont to ROTH?
« on: January 25, 2016, 09:37:55 AM »
Feels like a novice question, but we are going through our taxes and our MAGI is too high to deduct our Traditional IRA contributions from our income.  The MFJ limit is $118 and we are at $138 after all other deductions (and we both have a retirement plan)

Since there is no tax advantage to contributing to the Traditional IRA, would it be better to re-characterize the 2015 contributions to Roth to have Tax Free Future earnings?

GrowingTheGreen

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Re: Make too much money - Convert Trad IRA Cont to ROTH?
« Reply #1 on: January 25, 2016, 10:39:49 AM »
Heck yes!  Gotta love that tax-free retirement income!