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Learning, Sharing, and Teaching => Investor Alley => Topic started by: felizcortez on January 06, 2016, 08:27:31 AM

Title: Want to front load but unsure of total income for the year
Post by: felizcortez on January 06, 2016, 08:27:31 AM
I want to front load my wife and my IRA contributions this year.  We have been over the income limits and so have done a backdoor Roth the last few years, but I am unsure whether we will be above the income limits this year because I may be leaving my job in July. 

I believe I am able to contribute to Traditional IRA invested in VTSAX and let it ride until I know where our income will end up.  Then convert to a Roth if we are above the income limits.

If not above the income limits I could recharacterize the contribution as a standard Roth contribution or leave it in the traditional IRA and take the tax deduction.

Am I thinking about this correctly or am I missing something?
Title: Re: Want to front load but unsure of total income for the year
Post by: TheOldestYoungMan on January 06, 2016, 09:45:31 AM
As far as I know you have until you file to decide what the contribution was, but I've never tried to mess with it over (likely) irrational fears about what happens to dividends I accrued off the contribution during the year that are now just in the big pile of money.