Roth IRA AGI may come close to limit (IRAs, rollover, 401k)

[kaliman91]

I am a small business owner and my income has risen this year and depending on how the rest of the year goes I may come close to going over the limit for my Roth IRA. My problem I have is I set up to automatically deposit $100 in my IRA every week.
Should I continue to have it deposited each week or should I stop untill I have my end of year taxes done?
And if I do go over the limit is it as simple as withdrawing the amount I deposited this year?

I do use an accountant and I am sure he knows what to do and I will get with him about this on out next meeting after the end of the 3rd Q but figured I would ask here and see what options are available to me.

TIA

[kickingprop]

Do you have a regular IRA? If not, then:

If you expect your income to keep increasing and ultimately go over the income limit, I'd start moving those contributions to a non-deductible IRA, and do the back door rollover every year. This is how my wife and I still contribute to Roth's despite being over the AGI.

[kwong7]

I would stop the automatic $100 deposit and see where you stand come April 14th. I believe the backdoor Roth IRA is still in effect. You can open a non-deductible IRA and then fill out a form to convert your non-deductible IRA into a Roth IRA, which is non-deductible as well. You should try not to trade in your non-deductible IRA as it gets more complicated when you convert it into a Roth.

[Lowexpectations]

We normally make contributions for prior years after I know where the MAGI is, if you are over you can backdoor like said above. Open in Ira, make non-deductible contribution and immediately convert to Roth


Edit: there are no "non deductible" iras, contributions are coded individually as deductible or not when they are made to an Ira

[kaliman91]

I do have a simple IRA for myself and my employees that I can contribute 12k to and my wife max's her 401k with her employer.
Then I have this Roth in question.

[Lowexpectations]

Originally Posted by kaliman91

I do have a simple IRA for myself and my employees that I can contribute 12k to and my wife max's her 401k with her employer.
Then I have this Roth in question.

The simple will complicate your back door options, you should visit with your accountant and stop your Roth contributions immediately

[Aredhel]

Backdoor Roth: A Complete How-To

Read this, and then go talk to your accountant.

[kaliman91]

Originally Posted by Lowexpectations

The simple will complicate your back door options, you should visit with your accountant and stop your Roth contributions immediately

This is kind of what I figured. I wont sit with him till after the end of the quarter. Thanks for the advice!