{ "media_type": "text", "post_content": "Tax Folks-Pls help! I maxed out my Roth IRA in 2018 as I have been doing every year for the last few years. Anyways I received a large unexpected bonus in November which puts me over the income (cont)", "post_id": "5c57e02ec2fa4700132687b0", "reply_count": 3, "vote_count": 1, "bowl_id": "564a5cdb94887803001dd07c", "bowl_name": "Accounting", "feed_type": "crowd" }

Tax Folks-Pls help! I maxed out my Roth IRA in 2018 as I have been doing every year for the last few years. Anyways I received a large unexpected bonus in November which puts me over the income (cont)

like
Posting as :
works at
You are currently posting as works at

I had this a couple years ago.

You have to take a corrective distribution and pay tax on the gain. You have to do this prior to 4/15 I believe, but check with a tax person to confirm. If you are somewhere along the phaseout, you’ll have to use your MAGI to compute your max for 2018.

You can’t “recharacterize” from Roth to traditional in the same account - an account has to either be traditional or Roth, not commingled.

You can do whatever you want with the distribution, including putting it into a nondeductible traditional IRA. If you make such a contribution prior to 4/15, you can attribute it to the prior year (assuming you have room under the max). The deductibility of a traditional contribution is another income test, which you will also exceed, so this contribution will be nondeductible.

The complete kick in the pants is that once you’ve made the correction, you can take the same TIRA and make a “backdoor” Roth transfer, ending up right where you started.

like

TY this is helpful. Was thinking the same about the backdoor IRA haha

limits (~130k) for contributing to a Roth. I now need to recharacterize my contribution to a traditional IRA or face a fine, correct? Am I correct that the Traditional IRA contribution won’t be deductible since I also contribute to a 401k? Kicking myself now.. should’ve just put more into my 401k but had no idea this bonus was going to push me over the limit for contributing to Roth...

Related Posts

What's the salary range of an employee in Management Level 10 in Accenture?

Account director salary in tier 2/3 market... what’s normal? 12 years experience.

PwC - Anyone know if I'll get my bonus if I submit my 2 weeks before 9/29? Plan to still be here at that point but not sure if that's considered "actively employed".

like
like

Hi All,

There is two performance components in HCL salary, Engagement PB paid monthly and second one performance Bonus .
I have two doubts is Engagement PB will be paid even if we are in bench and is it recovered when I resigned?.
Performance bonus will be paid only once in year?. Your insights will be much appreciated

like

How much of a salary % increase would it take for you to leave your current job?

like

What will be usa onsite salary for systems Engineer in TCS?

like

Got an offer from pwc deals strategy for first year sr associate in HCOL. What comp is reasonable for this role? Any insights would be helpful! Thank you!

likehelpful

Has anyone transitioned to Real Estate PE? Curious what comp and progression looks like. Have a friendly offer to join a healthcare focused group in the SE, but have little to no real estate experience. TIA!

like

I was an Technology Risk Consulting intern at RSM..and I got my full time offer for being associate. I am in my last year of college and going to graduate next year. So I am offered around 73K and 4K sign-in bonus on top 3.5% bonus on my performance. Depending on current market and inflation is it good deal? or should I look for other companies ?

like

Hi Ladies . Need your insights !! Here is the situation. I have been part of current company for almost 5 years and I was not happy with quality of work and compensation so decided to quit even though work life balance was somewhat ok. Now I do have very good offers in hand and serving my notice period but part of me is nervous for the new change considering I might plan for baby in next 1 year.(Currently I am not pregnant yet. Just planning to be in next few months). Hoping to hear some advice.

like

I have worked in consulting for three years, worked in industry for 3 years prior to that, and have an MBA. I have the opportunity to move to a top 4 firm. What should I ask for in regards to potential promotion and/or salary bump? I don’t want to short change myself as this would be a promotion year for me at my current firm, however I find this conversations so uncomfortable. I currently make 90k base, and think I am underpaid as I am consistently put into stretch roles. Thanks for reading!

like
like

What are managing consultants salary range?

like

Hi Fishes,
Which one to choose from the below two?

Tiger Analytics - Data Engineer
LatentView Analytics - Data Engineer

PS: Salary not deciding factor!!

like

Just saw the email from Stephani Long about people getting bonuses who don’t normally qualify. I am a SA and started June 2021. Anyone in a similar spot last year who can share the bonus range?

like

For a role of FAAS Senior Consultant based out of Atlanta, GA, what is the expected salary for someone with 6 years of experience with an MBA?

like

How long is the retention period for those who got a retention bonus?

likesmart

Hi Fishes,

Any feedback regarding BCG - Change and Communications Specialist role? (Salary, travel etc.)
It is an internal role as compared to my current role which is client facing.

like

Does anyone have insight into why a firm would NOT have made the bonus announcement by now? It’s never been this late before, and our fiscal year ended months ago, so it’s not like they’re waiting on financial info. Starting to get nervous and I’m curious if there is an actual justification for pushing it later

like

Additional Posts in Accounting

is it possible to change primary skillset in Accenture.. YOE 5+
Currently working in SAP Analytics . Want to switch to Google or Microsoft Analytics

like
like

Did anyone use an MBA application consultant?

like

Why is the hiring process in this industry so backwards. I'm moving cities and recruiters in the new city "won't consider me until I've settled and I'm local." We do have SKYPE ... f@#cking hell.

like

How many hours a day on an average people end up working during busy season? Specifically for Assurance service particularly the data analytics team or digital assurance practise?

like

Anyone needs tickets for Atlanta united game? I have two in the supporters section you can have free.

like
like

cognizant 14.5 fixed lpa Publicis sapient company 17 lpa yoe-3 years Which should we select? job security and work life ?

like

Is spanx the best/most comfortable shapewear? I’ve never worn anything else, and I’m curious if there are better options. I have a bachelorette party coming up (all vaccinated!) and I want to wear something a little outside of my comfort zone...but I think I’ll want shapewear!

like

Hi, How will be work pressure for SAP HR technical consultant Barclays for pune location. And anyone joined recently please help me.

like

Hows brillio yearly hikes ? Single digit or double digit

Job opportunity in EY India for Java , Spring Boot , Angular full stack developer. DM me if interested.

like

Apparently some journals can prevent sci-hub from sharing their content now.

Do you know of a sci-hub alternative for free journal articles?

like
like

Hello All,
Does anyone have idea about sr. Technical project manager role in Baker Hughes???
Please comment if you have any leads

Baker Hughes

like

How is Santander project in Coforge? How much I can ask in HR discussion?
Yoe - 10
Java backend developer

Anyone know hiring tech companies in Utah? Im early in my career (3 years) of e-commerce account management and looking to find a long term company. Sounds like tech sales is one of the best options. Thanks!

like

Hi fishes I had a negotiation with hr in tcs she told we will get approval withing 2 days and you will recieve an offer letter and it's been 5 days since then nothing came over so does in ibegin it's showing evaluation in progress how much time does it take them to send an offer letter ?

like

Has TCS started hiring ex-TCSers

I am one and now I am getting a lot of mails from TCS Hrs for openings via naukri.

Thanks in advance

Additional Posts (overall)

Any of you currently stuck on year-round audits since joining the firm? Does this limit one’s path to manager promotion? What do you do to continue developing your experiences?

like

I am a senior in audit and I recently got a DM from someone at PwC about working in audit there. Any thoughts or experience on making a lateral move to another B4 firm? Is it worth considering? Any thoughts on pwc in particular?

like

Is it typical to feel burnt out before becoming a senior or am I just a wimp? I knew PA was a lot of hours but the past 8 months has been busy season hours and I don’t enjoy work anymore. Any advice?

like

Would you move to another state for a higher pay and leave your significant other? You’ve been together for more than 5years and you do plan/hope on it lasting

helpful

My teams client fired us- am i in danger of being fired (im staff II)? i did everything i was asked- maybe not going above and beyond my role- the seniors just didnt get to review in a timely basis.

like

Week 1 Lessons:
-Audits are way harder than quarters
-Slow down
-If you second guess yourself, switch subjects for a bit
-Assign work to staff in blocks
-Thank the people that help you

like

What is EY’s PI-Strategy practice and how does it differ from Parthenon-EY?

like

Survey: How useful do you find your firm’s audit manual (if they have one)? Should this be the first point of reference for someone who is new to a senior role? How often do you use it?

like

Leaving big 4 and going to industry was the best decision I ever made. For everyone struggling, there's a light to the end of the tunnel.

like

CLA announced there will be a comp market rate adjustment in July 2022. Does anyone from CLA know what % increase we can expect?

likefunny

Advice? I was hired into a startup because they needed someone with healthcare experience "develop FP&A processes." The thought of getting to use my 15+ years of experience + MBA in HC data analytics really appealed. But now I'm here, and I've realized...my boss is a MICRO manager. She has no industry experience, and simply refuses to think that I may have a better understanding of "best practice" for processes. I thought at first it was because I was new, but there's no sign of it changing.

like

Anyone knew or worked with Karen Ward?

like

How does email factor into client communication at your firm vs. face-to-face interaction?

Many partners still prefer face-to-face conversation with clients because they think it builds relationships and can uncover inconsistencies in a company’s financial matters.

But younger associates tend to prefer the efficiency of email when communicating with clients.

In your opinion, is client management handled more effectively via email or face-to-face?

What do you think your clients prefer?

like

That groggy feeling before my good boy pills kick in #amirite 😴

like

Only a week left until Game of Thrones! #happythoughts ☺️😊

like

That night before a business trip...and you realize you have to do laundry

like

I just want to flirt 😏

like

Am I the only one on here with the "Staff Accountant" title?

like

picking out suits for my business trip next week ain't no easy non-billable task 💼🕶🌂👔

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy.

Already have an account? Log in

New to Fishbowl?

image with Fishbowl logo and arms reaching out for a handshake

Already have an account? Log in

By continuing you agree to Terms of Use and Privacy Policy.
Messaging rates may apply

For account settings, visit Fishbowl on Desktop Browser or

General

Legal