Roth Contribution Filing Separate
In some situations it is advantageous to file married filing separate. This will eliminate any contributions to a Roth IRA for most due to the 10,000 MAGI limitation. Assume there are no other IRAs and contribututions are made in 2010 for 2009. These contributions are designated as nondeductible even if deductible. Are there any reasons these contributions could not be converted to Roths in 2010, effectively circumventing the contribution restriction.
Ed C.
Permalink Submitted by Alan Spross on Sat, 2010-02-06 18:38
Ed,
That would be OK. Any taxpayer with earned income can make a non deductible TIRA contribution and file the 8606 for 2009.
And since the marital status conversion requirements end in 2010 along with the income limits, taxpayer could convert in 2010 with no tax except for any small amount of earnings generated after the contribution and prior to the conversion.
In summary, the work around for high income taxpayers that cannot make regular Roth contributions works just as well for separate filers who do not qualify for regular Roth contributions.