Article Date:
May 2019


Word Count:
974

 

 

Roth IRA After TCJA: The Backdoor Is Still Open


As you likely know, the Roth IRA is a terrific way to grow your wealth with a minimum tax downside because you pay the taxes up front, and then with the proper holding period, pay no taxes after that.

 

Eligible individuals can now contribute a total of $6,000 ($7,000 catch-up for ages 50 and up) each year to either a Roth IRA or traditional IRA.1

 

For the Roth IRA, your ability to make contributions is phased out as your income increases.

 

For 2019, this phaseout occurs when your adjusted gross income (AGI) is between $122,000 and $137,000 (single) or between $193,000 and $203,000 (married filing jointly).2 If you earn more than the upper limits of the phaseouts, you’re completely barred from contributing to a Roth IRA.3

 

But that’s only if you don’t know what you are doing. ... Log in to view full article.

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