Maybe the question is kind of confusing, here are the specifics.
I'm gonna make $115k this year. This puts me just barely above the limit for being able to contribute to a Roth IRA. I love to save money, and I love putting money into the Roth.
BUT, I became eligible to contribute to a 403(b) this year. I can put away up to $15,500.
If I put the full amount into my 403(b), would my gross adjusted income then fall to $99,500, making me eligible to put the full $4k into a Roth IRA?
2007-10-01 05:00:06 · 3 answers · asked by Tom C 1 in Business & Finance ➔ Taxes ➔ United States
Yes everything you said is correct.
If by some chance you goof and your income goes over $100K, you can convert the Roth to a nondeductible traditional IRA by the due date of the return, and then move it back into a Roth in a later year when your earnings are below $100K.
2007-10-01 07:52:05 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
The 403(b) would lower your AGI and you would then be within the limits for a ROTH contribution.
You can do both the 403(b) and an IRA ROTH IRA. The regular IRA would be non-deductible since you are a plan participant. The ROTH contribution is never deductible.
2007-10-01 05:22:00 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
No, you can't contribute to both.
2007-10-01 05:12:30 · answer #3 · answered by Judy 7 · 0⤊ 3⤋