Roth vs traditional question

[Murse]

Well I have a good problem. My base pay rate is right around 70k. Turns out though we get forced overtime due to not enough staff. From what I have been told I will likely clear 90-100k by year end (if not more.) this brings up the question of Roth vs traditional. I think it would be unwise to assume I will make 70k and can max my 457 to allow me to do a traditional. So I guess that leaves me with a backdoor Roth? Can this be done at the beginning of the year?

[MDM]

Well I have a good problem. My base pay rate is right around 70k. Turns out though we get forced overtime due to not enough staff. From what I have been told I will likely clear 90-100k by year end (if not more.) this brings up the question of Roth vs traditional. I think it would be unwise to assume I will make 70k and can max my 457 to allow me to do a traditional. So I guess that leaves me with a backdoor Roth? Can this be done at the beginning of the year?

If you have a 457, do you also have a 403b...so you can contribute $36K pre-tax?

If you gross $100K, that would still put you at $64K, in the phaseout ($61K to $71K) region for tIRAs.  You could contribute ~(64 - 61) / (71 - 61) * 5500 = $1,650 to a tIRA.  The rest (5500 - 1650 = 3850) can go straight into a Roth - no need to go via the backdoor.

[Murse]

Well I have a good problem. My base pay rate is right around 70k. Turns out though we get forced overtime due to not enough staff. From what I have been told I will likely clear 90-100k by year end (if not more.) this brings up the question of Roth vs traditional. I think it would be unwise to assume I will make 70k and can max my 457 to allow me to do a traditional. So I guess that leaves me with a backdoor Roth? Can this be done at the beginning of the year?

If you have a 457, do you also have a 403b...so you can contribute $36K pre-tax?

If you gross $100K, that would still put you at $64K, in the phaseout ($61K to $71K) region for tIRAs.  You could contribute ~(64 - 61) / (71 - 61) * 5500 = $1,650 to a tIRA.  The rest (5500 - 1650 = 3850) can go straight into a Roth - no need to go via the backdoor.

No, there is no mention of a 403b anywhere I could find. We have a pension the employer contributes to and then the 457 we can contribute to.

[seattlecyclone]

You can wait until the beginning of the next year to see what your income was before making a decision about where to put your contribution for the year. Regardless, you should be low enough in income to make regular Roth contributions...no need to utilize the back door.

[braje]

According to https://www.irs.gov/Retirement-Plans/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-For-2015

If your filing status is single and your MAGI is <116000 you can contribute up to the Roth limit