You only need to worry about the pro rata rule in the year you make a conversion, and only then on December 31st. If you have a current 401(k), contact them to see if they will accept your incoming rollover. Ideally you would complete that step first in order to have confidence that it is done and done correctly. But even without doing the rollover, as long as you know it is possible, you can make the 2023 non-deductible contribution now in order to have it done by 4/15. You then have until the end of the year to do the rollover if you want to convert this year, but even if it takes until next year, just don't convert until you are confident you can get the rollover done. Frankly, as long as you have a plan to do the reverse rollover some time in the next few years, it's still work making the non-deductible contribution now.Quick Stats:
Self (39)
Wife (37)
Filing Status: Married Filing Jointly
2023 Adjusted Gross Income: 230k (so we are just above the phase out limit for married filing jointly)
Vanguard Rollover IRA Brokerage Account (former employer 401k traditional): 195k
Anticipated 2024 Adjusted Gross Income: 335-350k
Scenario:
We were hoping we would be eligible to fund a 2023 Roth IRA, but looks like we are just outside of the 2023 Income Phase Out limit
Other than taking advantage of an employer sponsored plan (Ex: 401k) - what would you advise?
Statistics: Posted by toddthebod — Fri Mar 15, 2024 11:35 am — Replies 2 — Views 149