Roth Conversion
A client ( 32 ) makes $ 350,000.00 per year & his wife ( also 32 ) is a stay at home mom.
His employer does not provide any qualified plan benefits of any kind.
Can we contribute to a Traditional & Spousal IRA?
If not, can we contribute to nondeductible IRA’s ( husband & wife ) and then convert to Roth IRA’s?
Any other thoughts on accumulating retirement assets for this client?
Thank you as always.
Permalink Submitted by Alan - IRA critic on Wed, 2018-09-05 02:42
If they want the TIRA deduction, they qualify since neither is participating in a workplace retirement plan. But if they want to make Roth contributions, because their modified AGI is too high, they would have to make non deductible TIRA contributions, and immediately convert them to Roth IRAs. The wife’s contribution would be a spousal contribution in either case.