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Fenderstratguy t1_jaa65vi wrote

These are the 2021 limits for contributing directly to a Roth IRA: if you made above 125,000 MAGI filing single, or above 198,000 MAGI filing jointly, then you could not contribute to a Roth IRA anymore. However there is a process called a backdoor Roth that lets you first put your $6000 - $7000 into a traditional Roth, then you transfer it into the Roth IRA. The issue is if you have money in the traditional IRA, then you will have to pay tax on a portion of the conversion (the PRO RATA rule). If you had rolled over your prior 401K into your current 401K then no worries about the pro rata rule.

There is absolutely nothing wrong with having assets in the 401K, the traditional IRA, and in a Roth IRA. You have flexibility there. But it does complicate contributing to a Roth IRA for high earners.

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