Retroactively reduce MAGI to get under roth income limit?

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old country buffett
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Retroactively reduce MAGI to get under roth income limit?

Post by old country buffett » Sat Mar 03, 2012 11:17 pm

My spouse and I just barely went over the 179k MAGI limit for Roth IRA contributions.

Is there anything we can do now to retroactively reduce our 2011 MAGI? We've made all deductions. I don't think we've missed anything. If we have I don't think we can quite make up enough ground to get under the limit. We'll recharacterize to a traditional IRA if need be, but it would be a shame to be so close and completely miss out on the Roth.

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damjam
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Re: Retroactively reduce MAGI to get under roth income limit

Post by damjam » Sat Mar 03, 2012 11:43 pm

Will partially recharacterizing get you under the limit?

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mhc
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Re: Retroactively reduce MAGI to get under roth income limit

Post by mhc » Sat Mar 03, 2012 11:49 pm

If you do re-characterize, there is a possibility you could get it back into your Roth by doing a backdoor Roth. Take a look at these articles if you are not already familiar with this:

http://thefinancebuff.com/the-backdoor- ... ow-to.html
http://www.bogleheads.org/wiki/Backdoor_Roth_IRA

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