I Already Funded My Roth IRA But My Income Is Over the Limit!

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Information I Already Funded My Roth IRA But My Income Is Over the Limit!

Title	:	I Already Funded My Roth IRA But My Income Is Over the Limit!
Lasting	:	4.14
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Views	:	35 rb

Any articles I can use to understand the difference between IRA Conversion vs Recharacterization I've heard of the Roth Backdoor conversion, but this Recharacterization has me confused Thanks!
Comment from : @BryanPosso

Very general explantion
Comment from : @garrettjensen5647

Thank you to the guy on the right because the guy on the left is checked out and chilling and not really listening to the question and waiting for his turn to talk about something that’s sort of related, but doesn’t really answer the question Thank you right side guy
Comment from : @FakeGrassCarpet

Good information Wish I found this video earlier The year I decided to automatically contribute $500 was also the year I exceeded the limit
Comment from : @kowasumono

Unfortunately you did not really explain how to "unwind" the Roth IRA contribution What are the steps I placed $6000 into a Roth in May of 2022 The stock that I bought went down by 60 BUT in 2022 my income was over the limit to contribute to a Roth NOW WHAT? The money is half of what it was so how do I "unwind" that investment to do a back door Roth?
Comment from : @tpbiii9943

Would it hurt to do a ROTH conversion if the MAGI is close to the limits?
Comment from : @jasonramirez6961

Hi, I filed a tax extension and now my $6000 contribution is worth less than that now Do I withdraw the full $6000 and eat that loss or withdraw the Net Income Attributable ($5700ish)?
Comment from : @leehyatt76

Great answer! I may run into this scenario as well and the annual contribution after you know your MAGI is a great way to avoid this issue,
Comment from : @BrandonMinguez

Sounds like with those people nearing the limit an idea to do is just put that money into a savings account and at the end of year you can see if that money can go directly to your ROTH or consider the back door ROTH
Comment from : @zw3565

Come on IRS allow Roth contributions regardless of income, make it simple and easy for citizens to invest, that way investors can take care of themselves at retirement instead of needing the govt to do so
Comment from : @nikitakucherov5028

Thank you for taking the time to answer this question and for stating your opinion about it
Comment from : @TheForexApostle

Bo! Great advice to do it at end of year It’s a different mindset than putting monthly chips in the pot, which many do
Comment from : @habbadabbado5765

So you can’t do a back door Roth IRA if you have a rollover IRA already? 🤦🏾‍♀️
Comment from : @beverlynelson1015

Is it not true that this years roth contribution limits base off of last years AGI?
Comment from : @BrianBlack

Thanks for taking this question! It’s possible I’m going to run in this issue myself this year
Comment from : @timfreebern5096

How can you max a 401k Roth and simultaneously a traditional Roth I’m guessing 3k each for max 6k
Comment from : @coolafternoons8930

I had this happen a few years ago, and I just reclassified it as a Traditional IRA I’m now in the process of doing Roth conversions to setup for backdoor Roths moving forward
Comment from : @jimsalmon5158

I will over the limit this year, so I decided to contibute to my 401K Roth IRA, No tax deduction but that's ok I have too much in tax deferred accounts and want to limit the tax bomb in retirement
Comment from : @user-br7rm3ol2s

That's what a taxable brokerage account is for Make your Roth IRA contributions once the year is over and you know your modified adjusted gross income, during the 3 month window from January - April 15th
Comment from : @benjaminjohnson1693

What's the limit on backdoor contribution? $6K?
Comment from : @k29lee

I really hope the backdoor roth stays around Wife and I max out both each year
Comment from : @great207

The fine (if you are caught) is actually very minimal by the way
Comment from : @andyw6996

Couldn’t you also leave it alone and pay the penalty, a max of $360?brYou just couldn’t contribute the next year, though couldn’t you again contribute in year 3 (and pay one-time penalty)?brbrPerhaps he takes out 2021 principal but puts it in this year at the discounted market prices brThe potential long-term gain on ‘buying low’ seems too good to squander over a $36000 one-time hit (for 2022 tax year)
Comment from : @danpass12