mostrike1 Posted March 13, 2013 Share Posted March 13, 2013 Sorry if there is a better place I should have posted this... With the income limits on Roth IRAs, I was told by my tax professional about doing a "conversion" or "back door" roth IRA so that I may contribute the full 5,000 dollars for 2012. I am working really hard to save as much as I can for retirement and know that I , personally, am ultimately responsible for doing what the tax professional says is ok. I realize no one can give me binding financial advice - but I am curious - has anyone done this to work around the income restrictions? From what I read on the internet, it seems "common" but then I read this article on forbes that cautioned the use of this. Anyone run into trouble with this? http://www.forbes.com/sites/josephsteinberg/2012/12/12/warning-about-roth-ira-conversions-often-misunderstood-irs-rule-can-cost-you-money-and-aggravation/ http://www.nerdwallet.com/blog/investing/2013/high-income-roth-ira-backdoor/ Anyone with thoughts on the matter would be appreciated, thanks! Link to comment Share on other sites More sharing options...
bradtPA Posted March 13, 2013 Share Posted March 13, 2013 Sounds like a CPA would be your best advisor..... Link to comment Share on other sites More sharing options...
rcdavis Posted March 14, 2013 Share Posted March 14, 2013 If possible, become a 1099 contractor.. Then you can put 15-18 % of your gross into a SEP account., which is tax deferred until you start withdrawing ( cannot withdraw w/o penalty before age 59.5 yrs, and have to start withdrawing by age 70. The more you make, the better your bank. Link to comment Share on other sites More sharing options...
mostrike1 Posted March 16, 2013 Author Share Posted March 16, 2013 Thanks, between the tax professional and the financial planning person, I got it sorted out. And, I did a little 1099 work this past year in some other rural ERs, so I put my max allowed into my Sep-IRA. If the world ends before my retirement, I am going to be mad : ) Thanks for the advice! Link to comment Share on other sites More sharing options...
Teasip Posted March 17, 2013 Share Posted March 17, 2013 I for one find such discussions informative and productive, especially for those of us nearing the point of retirement, as well as for those just starting out who are young and can take advantage of the compounding nature of investing. Link to comment Share on other sites More sharing options...
CornellSPA Posted March 18, 2013 Share Posted March 18, 2013 Why not just buy heavy metals? I've been turning my paper assets into Silver....check it out! Link to comment Share on other sites More sharing options...
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