[USER]

.. but I’ve managed to make significantly more in my w2 side gig to the point where I may make too much for a Roth IRA if I keep going like I am now. I still have a long ways to go but I’m wondering if I need to cut back to prevent going over the amount I can make to contribute to Roth IRA. Would you say it’s worth it to go 15k-30k over the limit and lose the Roth or better just to cut down? What’s the cut off? The side gig is easy so it’s not like I’m busting myself. I figured while I can I might as well make this “easy” money.

I’m guessing if I went over I would need to recharacterize my Roth contributions for the year and do a back door roth? Never done that before. Maybe it’s just a simple call to vanguard to set up. I’m guessing in that case it’s best just to make as much as I can and not let the income limit be a deterrence.

NOTE: wife stays at home with the 3 kids. Already maxing 401k and HSA to lower MAGI.

[Sean]

Don’t let tax nuances cause you to reduce your income.

Worst case if you’re over the limit, recharacterize and do a backdoor Roth, as you said. Just make sure you don’t have any other money in non-Roth IRAs.

[Matthew]

If your earning a decent amount in the side gig it might be worth looking at running it as a side business. That would open up SEP or SIMPLE IRAs and allow you to increase your contribution up to around 60k+

[Dawn]

Open an SEP IRA instead. Definitely don’t make less money.

[Author]

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