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 Contribution20212022 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 Status2021 Roth IRA Income Range2022 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 Status2021 IRA Income Limit2022 IRA Income Limit Single,…

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Can you do a Roth conversion with stocks?

The Roth conversion can be done in a few different ways.  The Roth IRA conversion I’m talking about here is moving stocks, bonds, ETFs, or mutual funds from the traditional IRA to the Roth IRA. While you can move property such as stocks from the traditional IRA to the Roth IRA there are a few…

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How to start planning for retirement at age 25

In this post, I’m talking about how to start planning for retirement at age 25. So if you’re starting your retirement planning.  We have you covered. And if you’re looking for the basics in retirement planning, you’ve come to the right place. Table of Contents Why Age 25? Age 25 is a starting point. It’s…

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