Backdoor Roth IRA – If your Modified Adjusted Gross Income for 2014 is greater than $191,000 and you are married filing jointly ($129,000 for single) you can no longer make a Roth IRA contribution. Or can you? If you have no other IRA’s, there’s are strategy that will work for you. Make a non-deductible IRA contribution then immediately convert the non-deductible IRA to a Roth. Beware of the tax pitfalls if you currently have a traditional IRA. Consult with our office to see if this strategy will work for you.
Our office has been contacted by a number of clients questioning phone calls they have received from persons claiming to be IRS representatives demanding payment of unpaid taxes and threatening them with legal action. These are scams because the IRS always sends written notices prior to taking collection action. See our October 2014 newsletter for more information. See all newsletters, here.