- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Yes, your contribution limit is based on your 2024 income. That is one of the reasons that you have until April 15, 2025 to make a contribution designated for 2024 -- so you know exactly what you are allowed to contribute.
Alternatively, if you contribute now and it is too much, you can either withdraw a portion of the contribution tax-free (all withdrawals of Roth IRA contributions are tax-free) or you can recharacterize the contribution as a contribution in a traditional IRA. Then you can do a backdoor Roth IRA conversion, assuming you do not have any funds in a traditional pre-tax IRA. If you do have pre-tax funds in a traditional IRA, your options are a bit more complicated but a recharacterization is still allowed.
‎October 20, 2024
6:37 PM