Are there any ways to reduce prior year AGI before April 15th?
I am trying to identify ways to reduce my 2023 taxes because I converted too much from a IRA to a Roth IRA, which bumped me into the 32% tax bracket, discovered after doing my taxes. Since I cannot recharacterize and return the excess Roth IRA rollover, I am trying to come up with ways to reduce my 2023 income to get back to the low tax bracket. The only way I have come up with so far is to contribute to a IRA and spousal IRA for 2023. But since I participate in a qualified plan at work, I am disqualified because my AGI is too high. Are there any other means to reduce taxable income in the following tax year for the prior tax year? Thanks
Permalink Submitted by Alan - IRA critic on Sat, 2024-03-02 15:21
If you had any 2023 self employment income, you could make a SEP IRA, SIMPLE IRA, or solo K contribution for 2023, or if you are eligible for HSA contributions for 2023, you can still make an HSA contribution.