2016 MFJ Roth Income Limits?
My DINK (dual income no kids) daughter and son-in-law have been over the MFJ Roth Income Limit in the past few years and have had to do a number of “back door” Roth IRA contributions.
But they both changed jobs late in 2015 to reduce the “stress” in working 60 hours per week and took pay reductions in their new 40 hours a week jobs.
I can see that the MFJ Roth Income Limit for 2015 is $183,000 and the Contribution Limit was $5,500 and since the Federal government says there was no inflation in 2015 can I assume those limits are the same for 2016?
I am trying to get their projected 2016 income out of them as I write this and if they are close to the MFJ Income Limit should they just do the back door procedure again in case they are at risk of going over the $183,00 limit.
TIA
SeattleSun
Permalink Submitted by Alan - IRA critic on Sat, 2016-01-16 02:22
The MAGI Roth contribution phaseout range for 2016 has been increased by 1,000 to 184,000 to 194,000. The contribution limit remains at 5500. If there is any doubt about going over the limit, they should continue with the back door Roth strategy. Of course, they cannot have any other non Roth IRA balance at year end or those conversions will be mostly taxable.
Permalink Submitted by Richard Rea on Fri, 2016-12-02 19:56
“If there is any doubt about going over the limit, they should continue with the back door Roth strategy.”Great advise Alan but it looks like she didn’t follow it.