Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

How do you do a $25k Roth conversion each year, in addition to a maxed out 401k? We do a backdoor Roth, but have always stayed within the IRA max contribution limit each year (in 2023, $6500p or $13k total).

Roth conversions from a tax-deferred account (401K or traditional IRA composed of pre-tax monies) are unlimited in amount and frequency.

Backdoor Roth is done with post-tax monies and those are limited to the annual IRS prescribed amount.

https://www.investopedia.com/roth-ira-conversion-rules-4770480

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

How do you do a $25k Roth conversion each year, in addition to a maxed out 401k? We do a backdoor Roth, but have always stayed within the IRA max contribution limit each year (in 2023, $6500p or $13k total).

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

Why would they be cut off? They can do backdoor Roth, too

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

That's how Congress pays for spending and avoids raising taxes on rich people.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

Crazier than the fact that every person earning less than $160,000 pays a greater percentage of their income to social security than you and everyone else earning more does?

+1, the regressive payroll tax on waged workers is crazy.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

Crazier than the fact that every person earning less than $160,000 pays a greater percentage of their income to social security than you and everyone else earning more does?

That's not crazy it's simply fair. Those who earned $500,000 all their lives don't receive greater social security benefits than those who earned $160k.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

Crazier than the fact that every person earning less than $160,000 pays a greater percentage of their income to social security than you and everyone else earning more does?

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

This is just so crazy to me. We make around 500-600k\yr and do a 25k Roth conversion each year in addition to our maxed out and employer contributed 401k. Crazy that someone who makes way less than me is cut off.

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

of course

Anonymous wrote:

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

+1. Backdoor Roth =/= regular Roth

Anonymous wrote:It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This is for direct Roth contribution. Backdoor Roths are still available with no income limit.

I feel like I follow this stuff pretty well and have never heard this.

If we make 400K, can we no longer contribute to a ROTH?

It says, in relevant part, "When it comes to Roth IRAs, you may not contribute to one next year if you make more than $161,000 for singles (up from $153,000 currently) and $240,000 (up from $228,000) for married couples filing jointly."

This article made me confused:

https://www.cnn.com/2023/11/02/investing/irs-401k-ira-new-contribution-limits/index.html