This year will mark the first time I’ve ever been remotely close to the Roth IRA income phaseout (which happens to be $95k – $110k) and in the past I have always tried to contribute to my Roth in a lump sum at the beginning of the year in order to get my money in the market as early as possible so that time can work for me.
But, with me this close to hitting the phaseout and not wanting to be penalized, what am I to do? One very viable option and one I’m going to consider is to make the Roth IRA contribution and then reclassify it at the end of the year once I find out how far into the phaseout I actually am.
More on how to reclassify your contributions (and another option) at Five Cent Nickel.