{ "media_type": "text", "post_content": "This question is probably beaten to death. I think I am not eligible to contribute to Roth IRA as our joint income is more than 200k. I have 401k but spouse doesn’t have a employer provided plan. I would like to contribute as much as possible to a IRA. Can I put as much as I want to a IRA, deduct 6000$ as tax deductible and rest (as much as I want) as nondeductible ? Or should I open two separate Ira account to keep things simple ?", "post_id": "600cf11550e50d0020d04d44", "reply_count": 5, "vote_count": 1, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

This question is probably beaten to death. I think I am not eligible to contribute to Roth IRA as our joint income is more than 200k. I have 401k but spouse doesn’t have a employer provided plan. I would like to contribute as much as possible to a IRA. Can I put as much as I want to a IRA, deduct 6000$ as tax deductible and rest (as much as I want) as nondeductible ? Or should I open two separate Ira account to keep things simple ?

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Do a backdoor roth

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Yes. You can do 6k/year to traditional IRA that can immediate transfer to Roth. And potentially mega Roth if Deloitte allows after tax 401k contributions. Do some googling and reading and decide if you should talk to a financial advisor to figure out your options.

Yep, the back door Roth is your only option. And the way to do it is to contribute to a traditional IRA and then at some point roll it over into a Roth and pay the taxes out of pocket. It’s a loophole in the law and I don’t know whether it was intentional or an oversight but they still haven’t closed it.

Thanks all but how come no one is suggesting about non deductible IRA as an option ? I can contribute as much as I want there right ?

If you do the math, non-deductible IRA contributions are bad from a tax perspective. When you withdraw, the gains are taxed as INCOME. If you just put that money in an investment account instead and don't touch it until you retire, then the gains will be taxed at the much lower capital gains rate. In addition, making your IRA a mix of pre-tax and post-tax dollars can cause headaches down the line if you want to do an Roth conversion or reverse rollover. (If you DO decide to contribute post-tax dollars, be sure to file form 8606 with your taxes every year.)

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