Hello All,
I am asking this question in forum, because I was not able to find anything similar anywhere.
I am a non US citizen - resident alien and currently thinking not to lock my funds in traditional IRA.
My current AGI is 73k. If I contribute 6k to traditional IRA for year 2022. It will reduce my AGI to 67k level and make me eligible for Savers Credit of $400 ( considering MFJ).
And in year 2023, I will convert T-IRA back to ROTH. Then, I will be paying federal tax on 6k converted funds and have a lock in of 5 years. But I will retain my 400 savers credit as well as save on my IL State Taxes as retirement income is not taxable.
Is this possible to do so ?
If yes, I have already contributed 6k to Roth IRA for year 2022. So for now, I will re-characterize it to T-IRA and later move to Roth in 2023. Will that work ?
Note - As I understand, to get full 400 savers credit, I need to contribute some funds on my spouse's behalf and mostly I will be able to pull it off.
This is in ref to topic discussed here -
https://www.bogleheads.org/forum/viewtopic.php?t=276494
https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...
Thanks in advance.
