Can I contribute to both a traditional and Roth IRA in the same year?

Roth IRA Contribution Limits

2024 Contribution Limits

For 2024, the maximum Roth IRA contribution is $7,000 if you're under age 50, or $8,000 if you're age 50 or older (including the $1,000 catch-up contribution).

Income Limits and Phase-Outs

Your ability to contribute to a Roth IRA phases out based on modified adjusted gross income (MAGI):

• Single filers: Phase-out begins at $146,000 and ends at $161,000
• Married filing jointly: Phase-out begins at $230,000 and ends at $240,000
• Married filing separately: Phase-out begins at $0 and ends at $10,000

Backdoor Roth IRA Contributions

If your income exceeds these limits, you may be eligible for backdoor Roth IRA contributions. This involves contributing to a traditional IRA and then converting to a Roth IRA.

Conversion Considerations

When converting traditional IRA funds to a Roth IRA, you'll need:

• Professional valuation of all assets being converted
• Proper tax planning for the conversion year
• Documentation for custodian requirements

The conversion amount is taxable in the year of conversion, so accurate valuations are essential for tax compliance.