My wife stopped working for pay in 2022. I'm covered by a workplace retirement plan. We have both maxed out Roth IRAs for many years.
I recently realized that we could take advantage of a deductible tIRA for her, because our combined mAGI is below the phaseout limit. We have done so for 2024, which is helpful because I lost the ability to contribute to my family HSA this year with a change in insurance plans.
She contributed the max to her Roth IRA for 2023. We were also under the mAGI limit that year, I just didn't know about the specific limit when only one spouse is covered by a workplace plan.
We may not be eligible to do a deductible spousal IRA in most future years as my income would be right at the phaseout limit if not for 401k contributions. Our marginal rate is 22% both years.
Is it worth it to recharacterize her 2023 contributions to traditional?
I recently realized that we could take advantage of a deductible tIRA for her, because our combined mAGI is below the phaseout limit. We have done so for 2024, which is helpful because I lost the ability to contribute to my family HSA this year with a change in insurance plans.
She contributed the max to her Roth IRA for 2023. We were also under the mAGI limit that year, I just didn't know about the specific limit when only one spouse is covered by a workplace plan.
We may not be eligible to do a deductible spousal IRA in most future years as my income would be right at the phaseout limit if not for 401k contributions. Our marginal rate is 22% both years.
Is it worth it to recharacterize her 2023 contributions to traditional?
Statistics: Posted by Tamarind — Wed Mar 20, 2024 7:28 am — Replies 1 — Views 105