My married daughter has been contributing to both her employer sponsored Simple IRA ($12,000 max) and her Roth IRA ($5,500 max) for the last two years she has been employed with this “new employer”.
Q. This is acceptable under the IRS rules, right?
Previously she contributed to both her employers sponsored 401k ($18,000 max) and her Roth IRA ($5,500 max) for the 5 years she worked there.
TIA
Thanks Alan!Just reviewing the forum and have this new question.Daughter had to do “back door Roth contributions” in 2012, 2013, 2014 and 2015 but was able to go in the front door in 2016 and 2017 due to reduced Modified AGI in new job(s). Q. Max Modified AGI for 2018 to Qualify for Roth IRA contribution?
For joint filers the 2018 Roth IRA MAGI phaseout range is increased to 189k to 199k, so the phaseout starts at 189k.
Be aware that SIMPLE IRA balances are included in Roth conversion pro rata taxation. If/when her MAGI makes her no longer eligible for Roth contributions. The SIMPLE IRA balances will interfere with a Backdoor Roth.
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Permalink Submitted by Alan - IRA critic on Wed, 2017-12-27 21:43
Yes, that is fine as long as her modified AGI is not too high to qualify for a Roth contribution.