FYI...IRA max contributions are now $6,000

[Skooby]

A $500 increase. If you contribute monthly, adjust to take full advantage.

That's $500 a month.

It's Official -- the IRA Contribution Limit Is Increasing for 2019 -- The Motley Fool

 

[dterpsss]

or zero

 

[Skooby]

or zero

lol. I think the minimum monthly contribution at most companies that offer Roth IRAs is $100 a month.

I'd do it if you can spare a note a month.

 

[YamakaSmacker]

Do NOT go over

 

[Skooby]

Do NOT go over

You went over before?

 

[YamakaSmacker]

You went over before?

Yea. Had to sign paperwork for a refund I recieved from fidelity in the mail and accrued some hidden fees as a result

 

[dterpsss]

lol. I think the minimum monthly contribution at most companies that offer Roth IRAs is $100 a month.

I'd do it if you can spare a note a month.

Max income requirements means no Roth for me, firsts world problems

 

[Skooby]

Max income requirements means no Roth for me, firsts world problems

You ever considered a back-door Roth?

 

[dterpsss]

You ever considered a back-door Roth?

hmm will look into it, shorthand for mega backdoor roth? or are those two variations?

 

[Skooby]

hmm will look into it, shorthand for mega backdoor roth? or are those two variations?

Never seen the term mega included. But I'm under the income limit so I haven't looked into a backdoor Roth that much.

Btw, here are the new income limits for those wondering:

 

[dterpsss]

Never seen the term mega included. But I'm under the income limit so I haven't looked into a backdoor Roth that much.

Btw, here are the new income limits for those wondering:

I’m going to need a coffee to understand this


https://www.rothira.com/what-is-a-backdoor-roth-ira#what

 

[Primetime]

Never seen the term mega included. But I'm under the income limit so I haven't looked into a backdoor Roth that much.

Btw, here are the new income limits for those wondering:

I’m going to need a coffee to understand this


https://www.rothira.com/what-is-a-backdoor-roth-ira#what

Both these resources were very informative. Thanks

The breakdown of the backdoor roth ira turned out fairly easy to understand. However, from what is explained, you're still getting taxed whatever % amount you backdoor/convert that you didn't already pay taxes on. i.e. if half of the amount you back door comes from a traditional ira, then you're getting taxed on 50% of that amount. And they said the conversion could count as income when you do the conversion, i.e. if you make 65k/year and you convert 20k from your traditional ira to your roth, you may get taxed as an 85k/year individual that tax season.

It's all very interesting. I recently got a Roth IRA and i'm just under the max but i'm also applying for some expat/overseas jobs and if i land one of them, i'm gonna be over the max, so this is good information to know