2019 Backdoor Roth limit when turning 50

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Topic Author
Traveller
Posts: 722
Joined: Sat Jun 25, 2011 10:47 am

2019 Backdoor Roth limit when turning 50

Post by Traveller » Fri Jan 18, 2019 10:05 am

I am about to do my backdoor Roth contributions for 2019 and want to make sure I've got the limits correct.

I am 49, turning 50 in December.
I understand the 2019 IRA limit to be $6k, or $7k if over age 50. The wiki states it this way:
the maximum IRA contribution in 2019 is $6,000 per person (or $7,000 if over age 50)
Am I correct that I can contribute and convert the full $7k now, even though I won't turn 50 until December?

Thanks!

mcraepat9
Posts: 1379
Joined: Thu Jul 16, 2015 11:46 am

Re: 2019 Backdoor Roth limit when turning 50

Post by mcraepat9 » Fri Jan 18, 2019 10:16 am

Traveller wrote:
Fri Jan 18, 2019 10:05 am
I am about to do my backdoor Roth contributions for 2019 and want to make sure I've got the limits correct.

I am 49, turning 50 in December.
I understand the 2019 IRA limit to be $6k, or $7k if over age 50. The wiki states it this way:
the maximum IRA contribution in 2019 is $6,000 per person (or $7,000 if over age 50)
Am I correct that I can contribute and convert the full $7k now, even though I won't turn 50 until December?

Thanks!
Correct. You can contribute the full catch-up payment in the calendar year you turn 50, regardless of whether your birthday is Jan 1 or Dec 31.

For your reference: https://www.irs.gov/retirement-plans/pl ... tributions
Amateur investors are not cool-headed logicians.

Topic Author
Traveller
Posts: 722
Joined: Sat Jun 25, 2011 10:47 am

Re: 2019 Backdoor Roth limit when turning 50

Post by Traveller » Fri Jan 18, 2019 10:28 am

mcraepat9 wrote:
Fri Jan 18, 2019 10:16 am
Correct. You can contribute the full catch-up payment in the calendar year you turn 50, regardless of whether your birthday is Jan 1 or Dec 31.

For your reference: https://www.irs.gov/retirement-plans/pl ... tributions
Thank you so much. I guess getting older isn't all bad...

Pigeye Brewster
Posts: 395
Joined: Thu Oct 05, 2017 7:33 pm

Re: 2019 Backdoor Roth limit when turning 50

Post by Pigeye Brewster » Fri Jan 18, 2019 11:49 am

Traveller wrote:
Fri Jan 18, 2019 10:28 am

Thank you so much. I guess getting older isn't all bad...
Being able to make catch up contributions has been about the only benefit I've noticed...

ThisTimeItsDifferent
Posts: 246
Joined: Sat Jan 31, 2015 2:51 pm

Re: 2019 Backdoor Roth limit when turning 50

Post by ThisTimeItsDifferent » Fri Jan 18, 2019 11:50 am

If you turn 50 on January 1, can you contribute the catch up amount in the calendar year before your birthday as common law and social security consider one to be that age on the day before the birthday?

They count the day of one's birth and the current day even if they are partial days so if one is born on January 1, then as of December 31, one is 365 (or 366 if a leap year) days old, or 1 (more) year old.

mcraepat9
Posts: 1379
Joined: Thu Jul 16, 2015 11:46 am

Re: 2019 Backdoor Roth limit when turning 50

Post by mcraepat9 » Fri Jan 18, 2019 12:14 pm

ThisTimeItsDifferent wrote:
Fri Jan 18, 2019 11:50 am
If you turn 50 on January 1, can you contribute the catch up amount in the calendar year before your birthday as common law and social security consider one to be that age on the day before the birthday?

They count the day of one's birth and the current day even if they are partial days so if one is born on January 1, then as of December 31, one is 365 (or 366 if a leap year) days old, or 1 (more) year old.
But does the Internal Revenue Code? No indication that the common law/SS approach applies here.
Amateur investors are not cool-headed logicians.

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