Ask an Advisor: We Earn $350K+ Per Year and Can't Contribute to a Roth IRA. Do We Have to Wait Until Retirement to Convert?
Yahoo Finance·2026-01-23 05:00

Core Insights - The article discusses the eligibility for Roth IRA contributions and conversions, emphasizing that while there are income limits for contributions, there are no income limits for conversions from tax-deferred accounts to Roth IRAs [1][3][6]. Group 1: Roth IRA Contribution Limits - Single filers can contribute fully to a Roth IRA if their modified adjusted gross income (MAGI) is below $146,000, with the ability to contribute phased out at $161,000 [5]. - Married couples filing jointly can contribute fully if their combined MAGI is below $230,000, with a reduced contribution allowed up to $240,000; those exceeding this limit cannot contribute [5]. Group 2: Roth Conversions - Roth conversions allow individuals to transfer funds from tax-deferred accounts like traditional IRAs or 401(k)s into a Roth IRA without any income restrictions [6][7]. - The amount converted must be included in taxable income for the year the conversion occurs, which can impact overall tax liability [7].

Ask an Advisor: We Earn $350K+ Per Year and Can't Contribute to a Roth IRA. Do We Have to Wait Until Retirement to Convert? - Reportify