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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121110  
Subject: Re: Roth contribution above income Date: 11/27/2012 7:45 PM
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You may be able to entice him by telling him that there could be a way for him to make perfectly legal Roth contributions going forward.

If the availablity of this is possible without reducing current earned (W2) income, would love to know for myself how to make Roth IRA contributions when you exceed income maximums.


It's more or less as ferjen said. If you have no traditional IRA account, including SEPs, SIMPLEs, and rollovers from prior employer plans, you can make a nondeductible contribution and immediately convert it to Roth with no current tax effect. If you do have pre-tax money in any traditional IRA account each distribution, including conversions to Roth, is a proportional mix of taxable pre-tax and nontaxable post-tax money.

Phil
Rule Your Retirement Home Fool
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