Post Tax IRA
Confirming post tax IRA contributions to an IRA can be made (not pre-tax), although participant makes maximum contributions to their retirement plan at work. Salary over $400K, married, spouse is retired.
Confirming post tax IRA contributions to an IRA can be made (not pre-tax), although participant makes maximum contributions to their retirement plan at work. Salary over $400K, married, spouse is retired.
Permalink Submitted by Alan - IRA critic on Tue, 2025-06-10 10:03
Correct. There is no income limit for non deductible IRA contributions. The contribution must be reported on Form 8606.
But if the participant has any non Roth pre tax IRA balance, all distributions including conversions will have to be pro rated, so making the contribution works best when there are no pre tax balances. The contribution can then be converted tax free right after it is made. This is known as the “back door Roth” strategy, effectively a two step process for making a Roth contribution.
Permalink Submitted by David Berdow on Tue, 2025-06-10 11:15
Thank you