Over 2019 income limit for full Roth IRA contribution

[kellygreen]

I just realized that our adjusted gross income put us in the phase-out income band for Roth IRAs in 2019. We both fully funded our Roths in 2019.

I almost (but not fully) maxed out my HRA contribution in 2019 but I can't update until our next open enrollment period (November).

Is my my best option is to increase 401(k) contributions (we do not completely max those out)?

Our financial planner should be able to help us figure out what to do about 2019, right?

[Poppy]

Maybe someone else can confirm but I don't think increasing your 401k reduces your MAGI, which is what the Roth income limits are based on.

If you already contributed for 2019, you can call your Roth broker and recharacterize part of your 2019 contribution to a traditional IRA contribution until tax day so that you're within your limit.

Provided that you don't have a traditional IRA already, you can convert the traditional IRA contribution back (essentially doing a backdoor Roth). The tax forms are a little confusing but manageable.

[illgetthere]

401k deductions do reduce your MAGI. o don't know how to fix 2019, but I would definitely just increase your deductions for 2020. You can also put some in traditional to get your MAGI down to allow Roth contributions if you are barely over the limit

[protozoa]

You can just contribute to a traditional IRA instead, then do a conversion to a Roth IRA.

[gt7301b]

It is too late to contribute to your 401(k) for 2019, but you can increase your contribution going forward.  (If you have a Roth option you could also do that through a Roth 401(k).

If you fully funded the Roths for 2019 you should be able to recharacterize the contribution to a traditional IRA and then do a back door Roth.  The big thing to be aware of would be if you have any other IRAs you could have additional taxes due.

www.investopedia.com/what-to-do-if-you-contribute-too-much-to-your-roth-ira-4770686