I saw many posts where people are contributing to Roth IRA. However, Roth IRA contributions are not permitted if modified adjusted gross income (AGI) is above 199,000 if you're married filing jointly. Did the folks who contributed, fall outside the bucket?
There is Butthole Roth IRA option. You put your money into a traditional IRA account and then convert it into a Roth IRA account, where you end up paying the tax and go thru some administrative processes.
Important to note the traditional IRA contribution has to be done post tax
Question on that, can you do all that in the same year? What are the administrative processes?
People use the mega backdoor roth ira (or 401k) conversion. The employer plan has to support it. Roth 401k conversion is as simple as setting up after tax contribution and checking the auto conversion box. Roth IRA conversion may require explicitly asking for it.
Make sure not to get Roth IRA and Roth 401k confused. Different things.
Go away, humblebraggart. Some of us will never see 199k and would never learn of that limitation.
Backdoor.