Non deductible IRA
If I am contributing to 401 403 and no IRA. I want to open new account for non deductible IRA. Is there income limit or active income required? Can I convert to Roth in a month? I assume limit is 7509
If I am contributing to 401 403 and no IRA. I want to open new account for non deductible IRA. Is there income limit or active income required? Can I convert to Roth in a month? I assume limit is 7509
Permalink Submitted by Alan - IRA critic on Sat, 2024-03-02 14:58
Since you have earned income to make an IRA contribution up to 7500 for 2023 or 8000 for 2024, and there is no income limit for non deductible IRA contributions, you can make the 7500 contribution and convert with no waiting period. But if you already have an owned TIRA with a balance, that conversion will be taxable per Form 8606. Be sure to indicate on your check which year the contribution is for. You should write a separate check for each year’s contribution, but if you make the contributions close together you could convert the 15,500 at one time.