Personal Investments • 2023 contribution to Roth IRA after taxes filed?

nms2404, welcome to the forum.

Complications:
C1) I hired an accountant to help me with my 2023 taxes because of various complexities (international student, 2 state tax returns because of out-of-state internship, etc.), and they suggest not contributing to the Roth IRA as to not complicate the already-filed (and refunded) 2023 return.

As long as you are under the income limit a Roth IRA contribution made for 2023 will not complicate your 2023 tax return because it does not affect and is not reported on your tax return.

C2) I am not sure where I will retire in 30+ years. It may or may not be in the SF Bay area or even the US (depending on how/whether the immigration process pans out).

Now that unknown might affect your decision on whether or not to contribute to the Roth IRA. The thing is, if you will have access to an employer retirement plan any Roth IRA will be a small portion of your retirement assets. Would you also forgo a 401k because you don't know what will happen in 30 years?

C3) From 2024, my expected gross income will be 155k though I may end up above the 2024 $161k income limit should I receive performance bonuses after certain milestones this year.

Your high income may make using the backdoor Roth IRA method necessary. As long as you have no non-Roth IRA assets it is doable.

Options:
Given my understanding and complications (U1-U7, C1-C3; but please correct me if I'm wrong!), I'm pondering the following immediate options (O1 or O2; please feel free to suggest other options):
O1) Contribute to a Roth IRA $6500 for 2023 before April 15. Wait and see what I will be able to contribute for 2024.
O2) No need to make major decisions before April 15. Take time to work out my long-term strategy.

If you want to make that contribution, do so. You have a month left to decide for 2023.

Statistics: Posted by Duckie — Tue Mar 12, 2024 6:36 pm — Replies 1 — Views 169

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