Roth IRA: How To Get Around Income Limits

If you are a high earner you probably have been told you can’t make contributions to either a traditional IRA or to a Roth IRA.

However, the Wall Street Journal says there is a way around the problem.

WSJ’s Karen Damato explains that you can make after tax contributions to a regular IRA account and then move the money into a Roth IRA account where you get tax-free income.

“The front door into Roths is shut for many investors. Married couples earning $191,000 or more and singles earning $129,000 or more in 2014 are barred from contributing directly to Roth IRAs,” says the WSJ.

“More than 40% of the Silicon Valley executives working with adviser Bijan Golkar of FPC Investment Advisory Inc. in Petaluma, Calif., do this year after year, he says he told the WSJ. “Roth IRAs are “a great tool” for these clients, who are likely to be in high tax brackets even in retirement because of hefty 401(k) accounts, he says.”

Thanks to for the heads up on this issues.

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