What Happens If You Hit the Roth IRA Income Limit?

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Information What Happens If You Hit the Roth IRA Income Limit?

Title	:	What Happens If You Hit the Roth IRA Income Limit?
Lasting	:	3.24
Date of publication	:
Views	:	31 rb

Do you realize how ridiculous that sounds to be able to put a cap on somebody who wants to save for the future just another control by the government
Comment from : @dannyknuth3599

I been illegally adding money to my Roth for 10 yearsbrbrHow will they know I made too much 30 years ago when I withdraw when I’m 65?
Comment from : @CivSki

Why are their limits? Why are we not allowed to add as much as we want to our Roth IRAs?
Comment from : @CleanWithConfidence

What if you went over and you turn 50 in April?
Comment from : @etagrats1

what if you had losses while your contribution was in there?
Comment from : @debsandy2515

So to be clear, your CURRENT YEAR MAGI is what is considered for the matching year ROTH contributions correct? For example, your 2021 tax year MAGI finish is NOT what is used to determine your 2022 ROTH contribution limits, correct?
Comment from : @straitjacketstudios

If you contribute all at once you can’t dollar cost average
Comment from : @emaxxx13

Ughhhh this is me this year I was unemployed and wasn't expecting to hit the limit this year Too add to the complexity, I changed the provider of my Roth IRA before I knew my salary and don't remember how much I originally contributed (can find out, just lazy)
Comment from : @CarlinTran

Gee, thanks captain hindsight! Was looking for an answer here and all I got was "you shouldn't let that happen"
Comment from : @clarkvantussenbrook6536

How do you now for sure that that you didn't cross that limit? My taxes provide an Adjusted Gross Income value, but not MAIG I'm pretty sure I'm ok, but it's hard to tell 100brbrI'm at 109k AIG according to my taxes in 2020 I did max out my traditional 401k last year This year, I'm splitting my 401k between traditional and Roth 50/50 and maxing them out I'm guessing this is going to increase my AIG some brbrI wish more people talk about this I think the penalties are pretty big if you contribute when you are over the limit It seems like a dumb rule anywayespecially since you can backdoor it
Comment from : @DjJoeKhoury

This happened to my gf We just realized that she was way over in 2020 and only have a few days to file taxes Her 401k is maxed out Let me tell you it is a pain in the ass Especially when you are so close to the tax day deadline
Comment from : @alaincordova2

Honestly, hitting the income limits on a Roth IRA is not a bad problem to have We talking over six figures here
Comment from : @blackpow3r

love the show and my friend needed this question answered! are you doing another video about the "hairy mess" when undoing contributions?
Comment from : @Dpaq13

I had this situation happen as well I just opened a traditional ira and rolled my contributions into that account It turns out I still have to pay taxes on the contributions because I made too much money to defer the taxes, but at least I don’t owe an early withdrawal penalty
Comment from : @jimsalmon5158

Am I right in thinking that the main issue is less about paying the tax/penalties and more about the annoyance/complexity of having to calculate the exact amount of earnings attributable to the overcontribution and filing the necessary paperwork in accordance with the tax code?
Comment from : @tomd8019

Great question and answer Same issue for me in 2020
Comment from : @youtubeuserUCVuhjgRB1

Too bad she didn't mention if she was participating in a company 401K plan, so there was a better picture to provide guidance Also, was she talking about hitting the phase out limit of $125K or the end of the phase out limit of $140K?
Comment from : @TIB1973

Don't most people know the range of their raise and/or bonus? They should have anticipated that the situation would occur Also, it unlikely that you go from being 100 eligible and 100 non-eligible There is phase out range, so dollars cost averaging should still work
Comment from : @dec1slh

What happens if I over contributed in my roth 401k by 1000 this year 😬
Comment from : @johnathancovey9398

You may also be able to do things like increase your contributions to your 401k/457 This will reduce your take home pay and put you under the income limit
Comment from : @rossfarley3952

See if your boss is will to defer your last month's pat to next year
Comment from : @randomsh-t917

fortunate to be over the limit for direct roth contributions but i would think a backdoor roth would solve all that
Comment from : @princeofthereptiles4422

When I was approaching that limit, re-characterizations were a thing If I were approaching the limit now, I would just do the backdoor Roth even if I may not need to Lets you deploy it at the beginning of the year and not worry about penalty, etc
Comment from : @nickdoyle-achievefinancial2464

That’s why we have financial advisers Back door Roth works
Comment from : @philipgerry5228

Never seen this very important issue addressed on any other financial show I may be over this year, so good to know Thanks!
Comment from : @user-br7rm3ol2s

what if your over the Roth limit for the past 3 years, becasue of raises and pay will be going up the next 4 years what are the options?
Comment from : @johnwilliam8366

If you’re barely over the limit, can’t you contribute to your traditional 401K to lower your MAGI to within the limit for roth ira?
Comment from : @cidxtra

Hmmno thoughts on turning down the raise or bonus? lol
Comment from : @tcgtpl

I hit the limit in April So I stopped investing and was saving for a house, but would like to continue to invest ideally Happy Mothers Day to all the moms :)
Comment from : @Sophie3647s