Income Limit For Backdoor Roth Ira

Your roth ira contribution limit depends on your tax filing status and your modified adjusted gross income magi.

Income limit for backdoor roth ira. For 2018 if you are a single filer the income limit was 135 000 if you are over that you cannot make any type of roth ira contribution. A roth ira currently has an income limit of 135 000 for single tax filers and 199 000 for married couples joint filing. If you don t know your magi see below for information on how to calculate it. A backdoor roth ira allows taxpayers to contribute to a roth ira even if their income is higher than the irs approved amount for such contributions.

But the basic idea of a backdoor roth ira is. A traditional ira has no such limits which is what makes the backdoor roth such an appealing route for high earners. This technique is known as a backdoor roth ira. The backdoor roth ira contribution is a strategy and not a product or a type of ira contribution.

However there is a legal strategy you can employ to get money into a roth ira even if you exceed the roth ira income limits. A method that taxpayers can use to place retirement savings in a roth ira even if their income is higher than the maximum the irs allows for regular roth ira contributions. If you are part of a married couple filing. For clients who can t contribute to a roth ira or who want to ultimately accumulate large amounts in a roth ira account the mega backdoor roth is a strategy to consider if their employer s.

The only limit applies to the tax deductibility of the contribution if you re covered by an employer plan and your income exceeds a certain limit. Roth ira rules limit the amount of money you can earn and still make a contribution.