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Re: [TSPStrategy] Can us Feds do a backdoor Roth conversion?

Jeez...people...There is none.  Like I said this tactic is SPECIFICALLY for the wealthy, or more accurately high-income earners.  High income earners are not allowed to contribute directly (DIRECTLY) to a Roth but THEY CAN contribute to a REGULAR IRA then convert the IRA funds to a Roth.  It is called a Backdoor Roth and has 0 applicability to anyone but high 14s, 15s, or SES.  From;

https://www.schwab.com/ira/roth-ira/contribution-limits#:~:text=If%20you%20file%20taxes%20as,208%2C000%20for%20the%20tax%20year

" Roth IRA contributions are made on an after-tax basis. However, keep in mind that your eligibility to contribute to a Roth IRA is based on your income level. If you file taxes as a single person, your Modified Adjusted Gross Income (MAGI) must be under $139,000 for the tax year 2020 and under $140,000 for the tax year 2021 to contribute to a Roth IRA, and if you're married and file jointly, your MAGI must be under $206,000 for the tax year 2020 and 208,000 for the tax year 2021. "


On Thu, 30 Sep 2021 07:10:51 -0400, "Thomas Wellock" <thomas.wellock@gmail.com> wrote:
 
What is the advantage in putting the money in a traditional account and then converting it immediately to a Roth? Why not contribute directly to the Roth? 
 
On Wed, Sep 29, 2021 at 9:38 PM Smooth1_2u via groups.io <Smooth1_2u=yahoo.com@groups.io> wrote:
Main thing to accumulating wealth is maxing out your TSP, then create a Traditional IRA and then Roth IRA. Put in some money (I.e. $500/month) in your Trad IRA, and then a week after, move those funds over to your Roth IRA.

if you contact your brokerage like Etrade, Vanguard, or TD Ameritrade, they will help you with the process. There's couple things I wish we could do with the TSP,  but it's all good.

 

 

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