How to get a Bigger Tax Refund with the Roth IRA

[@RyanJArgyle]

Question!! Could over contributing to a Roth IRA be worth the 6% tax? I have heard about a strategy that suggests this but haven't found any actual explanations.

[@TravisSickle]

Possibly, if you end up meeting the requirements next year, it's called absorbing, but if you don't then it will be 6% every year until it's fixed or absorbed.

[@TravisSickle]

You bring up a good point and I should do a video on it.

[@TravisSickle]

kzbin.infoEBd4938ieko

[@tonzbal_88]

Great video! Do you have a video on the eligibility, income limits, etc on a traditional IRA?

[@TravisSickle]

yes, check the channel. I have many.

[@zanthiasimpson6520]

Hi Can this be done to reduce taxes owed as well?

[@TravisSickle]

Yes

[@newagetojesus2063]

I recently started a full time job, filed single no dependents, blank and didn't add I would be working a second job. Now if I get a part-time job on the side if I filed it the same way, what would be the consequences and how do I file to not owe money?

[@TravisSickle]

On the w4 estimator you can add the side hustle estimate and withhold through the w2 job. You would have to estimate your side hustle income to do it. I have a video on it.

[@newagetojesus2063]

@@TravisSickle lets say it's an hourly job, How would I fill out the w4 at the new one? and would I have to update the w4 at my current job?

[@rachelemazza8623]

Hi Travis, thank you for taking the time on these videos. Question: if I'm paying the tax in the year money was converted (2022), what happens if this is also a contribution year? Meaning I do this every year? if it's the max amount (7k bc I'm 58) - aren't the taxes going to remain the same?

[@TravisSickle]

Yes, but this way you’re always paying them a year later.

[@rachelemazza8623]

@@TravisSickle does it make a difference if the amount is the same tho? ( sorry - I'm new to all this.

[@TravisSickle]

Which amount? The amount converted to Roth each year?

[@rachelemazza8623]

@@TravisSickle yes. let's say I contribute 7k each year to Trad IRA, then convert, and keep using this cycle yearly with the same amount. Aren't the taxes the same yearly?

[@selenecoello5937]

Do you have a video as to how to be eligible? Thank you so much for the information!! you made it very easy to understand

[@TravisSickle]

Retirement Plan Income Limits for 2022 | 401k, 403b, most 457, IRA, Roth IRA kzbin.info/www/bejne/kKebXpuYgKyFhrs