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Financial Planning / Tax Strategies


Subject:  Re: 2012 Roth Contribution after filing Date:  3/21/2013  9:59 PM
Author:  bmillz Number:  118106 of 127613

You didn't ask the question but I'd encourage you to have her look it the savings she might get if she contributed to a traditional IRA instead of a Roth. Not only would the contribution further reduce your tax liability but since the credit is larger the lower someones AGI is and the IRA contribution lowers ones AGI, the traditional IRA contribution might amplify her tax savings. She could then convert the Traditional IRA to a Roth in a future year when she wouldn't qualify for the retirement savings credit.

Obviously there are a lot of factors that go into whether or not this would be a good idea in her situation. But I think it's worth considering.
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