Join me on an adventure to enforce ERISA

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Join me on an adventure to enforce ERISA

spf3million: Sep 27, 2007; hit 'em with the rhythm

baquerd posted:

What changed that made me want to take action this year is the benefits kung fu they're pulling that ends up in her making mandatory contributions and preventing us from doing a deductible traditional IRA

Ok, just so we're clear, you're saying that her being opted into the 401(k) prevents you from deducting contributions to her traditional IRA, right?

baquerd posted:

I need to deduct at least the traditional IRA amount money or I'm losing my ability to do a Roth.

But if you don't deduct them that puts you over the Roth IRA income limit?

# ¿ Apr 20, 2015 20:36

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# ¿ May 16, 2024 08:33

spf3million: Sep 27, 2007; hit 'em with the rhythm

baquerd posted:

Yep, those are the IRS rules, so what has to happen now is that we use her 401k to get the proper deductions.

I'm not an expert but couldn't you just do a backdoor Roth if you wanted to contribute to a Roth IRA?

# ¿ Apr 20, 2015 21:20

spf3million: Sep 27, 2007; hit 'em with the rhythm

Gotcha, ok it all makes sense now. You want to lower your MAGI but since your wife has an employer sponsored 401k which you can't opt out of, you're not eligible to deduct contributions to a traditional IRA. Lowering your MAGI through her 401k would suck because the options are terrible. You can't do a backdoor Roth because you have a large existing traditional IRA and presumably you either don't have an employer 401k or you're already maxing it out so you can't reduce your MAGI there either.

# ¿ Apr 20, 2015 21:30

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Join me on an adventure to enforce ERISA