July 1, 2019
Roth IRAs are a robust way to save for retirement. You pay taxes up front on a Roth IRA — but after enrollment, all growth and withdrawals are tax-free.
For those with higher income levels, traditional IRAs are usually the favored investment because Roth IRA contributions have an income cap.
In 2019, if your modified adjusted gross income (MAGI) is $137,000 (single) or $203,000 (married filing jointly or qualifying widow[er]), you may not contribute to a Roth IRA.
So how can you utilize a Roth IRA if you’re in a higher income bracket?
There is a backdoor method to opening a Roth. You can open a traditional IRA, and then roll the money into a Roth (once per year).
Anyone can convert money from a traditional IRA to a Roth IRA, no matter your earned income level. You can also roll an unlimited sum from an existing traditional IRA into a Roth IRA.
We aren’t trying to trick the IRS — this conversion is legal. You must still pay taxes on any money in your traditional IRA that hasn’t already been taxed.
There are a few implications to be aware of if you’re considering a backdoor Roth conversion.
BOSS is the answer to your back office headaches. Our cloud-based solution enables you to hand complex accounting tasks over to us. We work the numbers while providing you 24/7 access to your data—and all at a fixed, affordable monthly fee.
We understand that the countless number of tasks associated with running a successful practice leaves you with little time to deal with your numerous accounting and tax responsibilities. That is where ...read more
With proactive tax strategies and industry-specific expertise, we have a proven track record of helping property management firms succeed from...read more
If you contract your services as a salesperson, freelance writer, graphic designer, real estate professional, or other profession contact us to learn about the comprehensive, affordable...read more
Morgan & Associates has extensive experience in nonprofit accounting, currently providing audit and tax return services to a growing number of...read more
There are a few telltale signs that you need to fire your current CPA firm and start looking for someone new.
If you own a business and pay employees any kind of compensation, you are required to pay federal payroll taxes.
These days, we seem to have endless articles on IT security while traveling, but far fewer on physical safety. Because summer can be big travel months for many businesses, we put together the following list of tips to help keep you safe while away from home.