If a couple’s 2022 AGI is $216K+ and their filing status is married/joint, doesn’t that eliminate the possibility of funding a Roth? I’m being told that a contribution of $1950 is allowed. Can you imagine a scenario where that works?
There are several choices such as partial recharacterization and conversion if there is no pre tax IRA value, or perhaps if there is no gain on the Roth contribution, a full recharacterization and conversion. During the poor investment markets in 2022, the chance of a loss on the Roth contribution is more likely than gains. With respect to any pre tax IRA values, the situation may differ between spouses, so they do not have to make identical decisions. The only absolute is that the allowed Roth contribution for both is 1950 because they fall in the MAGI phaseout range.
Permalink Submitted by David Mertz on Mon, 2023-03-13 16:30