Hello All,
My income is bit less than 100k a year and filling returns as MFJ. I am non citizen-resident alien.
I have contributed 12,000 to T-IRA last year (2022) for me and spouse. This entire 12k are pre-tax / deductible funds.
Q1: I know, I can contribute to ROTH directly. But for this year (2023), I am planning to contribute 13k to T-IRAs and immediately recharacterize it to ROTH. So that I can claim 13k as deductible funds in Federal taxes and add it back to my income via form 1099-R. My understanding is - then I will avoid IL state taxes on these 13k, as state does not tax retirement income - Refer this link.
Is my understanding correct ?
Q2: Since I have never contributed to T-IRA - non deductible / after tax funds, there should not be any complications wrt pro-rata/ aggregation rules from T-IRA side. But wanted to confirm the same.
Thanks in advance.
Thanks,
PRS
