s0lwind OP t1_jecwfwq wrote on March 31, 2023 at 2:20 AM

Reply to comment by Nagisan in What to do with Roth IRA contributions when salary increases mid year? by s0lwind

Just a follow up question. I have an active 10b5 plan (autosell stocks on vesting date), so there is a chance my MAGI would actually pass a limit at some point if stock price get high enough.

Would it make sense to keep my contributions to roth ira, and then just recharacterize if needed before next tax season due?

Nagisan t1_jecwt76 wrote on March 31, 2023 at 2:22 AM

There's no harm in re-characterizing "just in case"...the only downside is you might do so without needing to. There's also no harm in waiting, as long as you do it early enough to complete the re-characterization before Dec 31st 2023 (the conversion back to Roth can happen any time, as long as you don't have pre-tax traditional IRA dollars in the same year - but you do pay taxes on earnings when this happens so it's best to do it ASAP after re-characterization).