What are the implications of the Roth MAGI limit for cryptocurrency investors in 2022?

1 answers

• May 03, 2022 · 3 years ago
  As a cryptocurrency investor, the Roth MAGI limit is something you should definitely pay attention to in 2022. If your income exceeds the limit, you won't be able to contribute directly to a Roth IRA. This means you'll miss out on the potential tax-free growth and tax-free withdrawals that come with investing in a Roth IRA. However, there are still ways to work around this limit. One option is to consider contributing to a traditional IRA and then converting it to a Roth IRA. This can be done through a backdoor Roth IRA conversion. Another option is to explore other tax-advantaged accounts, such as a self-employed 401(k) or a SEP IRA. These accounts can offer similar tax benefits to a Roth IRA. It's important to consult with a financial advisor or tax professional to determine the best strategy for your specific situation.
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