Roth vs Traditional IRA for couple right around the MAGI cut-off.

[GueroKC]

Our MAGI is high enough this year that we can't deduct the full 5500 per person for the Traditional IRA. I figured I'd consult the oracles of the MMM forums and ask for advice.

1) Any suggestions for getting that MAGI down that perhaps I'm not thinking of?
2) Should I be converting the non-deductible portion of my Traditional IRA to a Roth IRA, or should I leave it where it is?

Thank you!

[dandarc]

You can still make an HSA contribution for 2015 if you are eligible.  There may be other things, but that is one off the top of my head.

You should recharacterize the non-deductible portion to Roth, assuming you are under the limit for regular Roth contribution (you probably are).  Be sure to use the word recharacterize when contacting your broker to do this - a conversion is a different thing and would not achieve what you want to do here.

[GueroKC]

Thanks dandarc. The HSA is an interesting option. I switched jobs in October, and my new job does NOT have an HDHP that would make me eligible for an HSA, but my previous job did.

I know the contribution limit can be pro-rated, for example, if I didn't have an HDHP-eligible plan until July last year, then I could contribute up to half of the contribution limit.

I'm assuming that doesn't work the other way around. Since I had an HDHP and my employer contributed to my HSA January - September of last year, I'm guessing I can't now, retroactively, contribute up to 3/4 of the HSA limit to lower my MAGI.

Anyone know if I'm correct in thinking that I can't do this, or this a sort of loop-hole?