Tykimeister
Recycles dryer sheets
- Joined
- Aug 21, 2008
- Messages
- 98
I am curious what people think of this of this scenario. I haven't sat down and done the math yet, but figured I would reach out and see if I'm missing something obvious.
I have made max contributions to my ROTH IRA since age 26. I am 37 now. I can't make IRA contributions in 2022 and 2023 because my MAGI is over $144,000 2022 and $153,000 2023. I have made 401K contributions both years.
Are there any obvious reasons someone should purposefully make less than $153,000 a years, strictly for the ROTH IRA tax benefits? I know the phase out period is quite wide, $138,000 to $153,000 for 2023. But if one was to make $160,000 in 2023, is it really worth it to make $7,000 more this year and disqualify yourself from making the ROTH IRA contributions? I know to make the max contribution you will have to make less than $138,000. You would have to decrease your income 160,000 - 138,000 by 22,000 to invest 6,500 in the ROTH and still be able to max your 401k contribution.
I guess I want to know, how much more than $138,000 a year would someone have to earn to justify giving up the ROTH IRA option? For someone who is 37 years old.
I have made max contributions to my ROTH IRA since age 26. I am 37 now. I can't make IRA contributions in 2022 and 2023 because my MAGI is over $144,000 2022 and $153,000 2023. I have made 401K contributions both years.
Are there any obvious reasons someone should purposefully make less than $153,000 a years, strictly for the ROTH IRA tax benefits? I know the phase out period is quite wide, $138,000 to $153,000 for 2023. But if one was to make $160,000 in 2023, is it really worth it to make $7,000 more this year and disqualify yourself from making the ROTH IRA contributions? I know to make the max contribution you will have to make less than $138,000. You would have to decrease your income 160,000 - 138,000 by 22,000 to invest 6,500 in the ROTH and still be able to max your 401k contribution.
I guess I want to know, how much more than $138,000 a year would someone have to earn to justify giving up the ROTH IRA option? For someone who is 37 years old.