Roth IRA contribution elligibility
Hi,
I am working adult. I am doing my 401K FULL contribution at work. I understand that I can’t contribute to the traditional IRA.
Could I still contribute to Roth IRA?
If I contribute to Roth IRA, do i need to fill in any specific forms while filing tax?
Thanks in advance.
Permalink Submitted by Alan - IRA critic on Sun, 2023-06-18 14:43
You can make a Roth contribution if your modified AGI is not too high for your filing status. Most tax programs will alert you if you enter a Roth contribution and your income is too high. If married, spouse’s income must be considered in the joint filing, but the income limits are higher. Roth contributions are not reported on your tax return unless your income is low enough to qualify for the Savers Credit, Form 8880. Most people that are able to make full 401k contributions have incomes too high for the Savers Credit.
Permalink Submitted by David Mertz on Sun, 2023-06-18 16:21
Also, you *can* contribute to a traditional IRA, it just might not be deductible and would have to be reported on your tax return as nondeductible instead. However, many people prefer to avoid making nondeductible traditional IRA contributions because of the effort needed to track these nondeductible contributions. If you are eligible to contribute to a Roth IRA, it would be far better to make the Roth IRA contribution than a nondeductible traditional IRA contribution.