Backdoor Roth IRA Pro Rata Rule Explained

Backdoor Roth IRA Pro Rata Rule Explained

The Pro Rata Rule is required when you convert a traditional retirement plan, whole or in part, to a Roth IRA and the traditional IRA has both aftertax and pretax money. The premise of the pro rata rule is to prevent higher-income earners from taking advantage of the backdoor Roth conversion without incurring additional taxes.…

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2022 Roth IRA Contribution & Income Limits

Roth IRA + Traditional IRA Contribution Limits 2022 IRA + Catchup Contribution 2021 2022 Roth IRA$6,000$6,000Roth IRA Age 50+$7,000$7,000Traditional IRA$6,000$6,000Traditional IRA Age 50+$7,000$7,000 Roth IRA Income Limits Filing Status 2021 Roth IRA Income Range 2022 Roth IRA Income Range Single$125,000-$140,000$129,000-$144,000Married Filing Jointly$196,000-$208,000$204,000-$214,000Married Filing Separately$0-$10,000$0-$10,000 Traditional IRA Income Limits Filing & Workplace Status 2021 IRA Income…

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How to calculate self employment taxes

Self-employment taxes are the employment taxes for someone who is self-employed.  They are separate from your state and federal taxes. If you want a quick answer, check line 12 on schedule SE.  Continue reading if you want to understand how self-employment taxes work. Table of Contents Full Video Transcript: How to calculate self employment taxes…

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