Submitted by mch_2 t3_11dqrzs in personalfinance
mch_2 OP t1_jabbdnm wrote
Reply to comment by DeluxeXL in Do Roth IRA excess contribution removals need to be exact in $ value? by mch_2
I believe AGI includes this which is applicable for me:
- net capital losses (up to $3000)
Both of these helped me reduce my AGI, but still a bit over the limit.
https://www.investopedia.com/terms/m/magi.asp says MAGI needs to remove deductions from "passive income/loss"... But not sure what that means, and if it includes (1).
The IRS worksheet 2-1 does not mention (1) so I think my AGI = MAGI?
I will definitely go the trad IRA/backdoor route in the future.. I do have losses for all $6000, so removing all seems like an easy solution?
DeluxeXL t1_jacgsnc wrote
>I will definitely go the trad IRA/backdoor route in the future.. I do have losses for all $6000, so removing all seems like an easy solution?
Yes. If you have loss, remove all (note that less than $6000 will be moved out, but this is ok), recontribute $6000.
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