Search found 7 matches

by dingdongditch
Sun Mar 19, 2017 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1735

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

You need to file a Form 8606 for each year you make a non-deductible contribution and/or make a Roth conversion. So yes, you need to file a separate 2016 Form 8606 for the 2016 non-deductible contributions each of you make. It establishes the non-deductible basis you will need for the Roth conversi...
by dingdongditch
Sun Mar 19, 2017 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1735

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

This is your best course of action is: ⋅ Each spouse should make a 2016 contribution to a traditional IRA by 04/18/17 and make a 2017 contribution as soon as possible. They will become non-deductible contributions by claiming no deduction for them on the 2016/17 returns and reporting the ...
by dingdongditch
Thu Mar 16, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1735

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

For 2017, your wife should open a Solo 401k. Fidelity has a great Self Employed 401k that accepts rollovers from IRA and has low cost index funds. If she had established a solo 401k before 12/31/2016, it would have allowed ~32K in contributions on 75K net business income. Solo 401k allows for two t...
by dingdongditch
Thu Mar 16, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1735

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

If you make traditional 401k contributions instead of Roth, and your wife opens a solo 401k and contributes $18k to it, your income will be below the Roth IRA contribution limit ($186k for married filing jointly) and you won't need the backdoor. This is true for 2017 tax year. Unfortunately it is t...
by dingdongditch
Thu Mar 16, 2017 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1735

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

Why on gods green earth would you do 401k Roth??? Could you elaborate on why I wouldn't want an investment to grow tax free? I understand that this is a highly variable idea that a combination of roth and traditional is best (What I actually already have) Perhaps fund the first $18,000 as tradition...
by dingdongditch
Thu Mar 16, 2017 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1735

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

Hello, welcome to the forum. For MFJ, the phase out MAGI is $186,000. Your number is roughly (135000+75000-18000)=192000. Can you fit $6000 somewhere between your HSA, FSA, and other deductions? About the backdoor ROTH, as you said the existing IRA will have to be either converted or rollover into ...
by dingdongditch
Wed Mar 15, 2017 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1735

Traditional Salary + Wife 1099 >200K Income, how to save tax defered

Hello, First time posting here. I am trying to figure out what tax advantage investment vehicles my wife and I should take advantage of. I make about $135,000 and she makes about $75,000. I am a salaried employee and have a 401k that I max out on ROTH contributions ($18,000) we also have an HSA thro...

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