Wednesday, January 18, 2023

Investor Hacks to Make 2023 Your Most Successful Year Yet - John Bowens

In January's episode of Getting Real With John Bowens, John discusses investor hacks that you can leverage right now, including 2022 contributions before the tax-filing deadline, spousal IRA contributions, Roth conversions, and backdoor Roth contributions. Start a conversation with an IRA Counselor to discover which account may be best for you: https://calendly.com/etnews/15?utm_source=youtube&utm_medium=social&utm_campaign=considertion_education&utm_term=grwjb_01_2023 You can still make your contribution for 2022, as long as it is before the tax-filing deadline (April 18, 2023). This means that you can contribute a full contribution for 2022, which is $6,000, as well as a full contribution for 2023, which is $6,500. There is also a catch-up contribution for those aged 55 and up, which is $1,000. This means that you have the potential to make up to a $14,500 contribution before the tax-filing deadline. If you are married to a non-working spouse and filing jointly, your earned income can support your spouse's contribution to their own IRA. This can potentially double your contributions for 2022 and 2023. A backdoor Roth conversion is where you contribute to a traditional IRA and then immediately convert over to a Roth. The purpose of this is, based on your modified adjusted gross income (MAGI) you may only be able to make a partial contribution or might not qualify to contribute at all to your Roth account. If you have a large amount of capital that you would like to convert over to a Roth, you will be taxed on the money you are contributing, which can add up if it is of high value. One method to spread out the taxes is converting in stages or phases. This is where you convert capital to a Roth in chunks, making the tax amount more manageable.