.. 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.
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+