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Going into 2016, I expected my gross income at the end of the year to be at least $133k, so I made nondeductible contribution to my Traditional IRA and then converted the nondeductible contribution to Roth IRA. This happened Jan 6, 2016.
However, the raise I was supposed to receive January 1st, did not come through until April-ish. Therefore, there is a chance my gross income is less than $130k. I assume I don't need to do anything to correct? I just paid taxes when I may not have needed to?
Now, I plan to max out my IRA beginning of January 2017. My gross income should now be at least $133, assuming my bonus is equal to last year. If it is less, then I could fall back into the phase out range. Should I do the conversion again or put it in the Roth? What happens if I put the $5500 into the Roth and my income is higher the $133k. I wouldn't know until end of the year since its contingent on year end bonus.
However, the raise I was supposed to receive January 1st, did not come through until April-ish. Therefore, there is a chance my gross income is less than $130k. I assume I don't need to do anything to correct? I just paid taxes when I may not have needed to?
Now, I plan to max out my IRA beginning of January 2017. My gross income should now be at least $133, assuming my bonus is equal to last year. If it is less, then I could fall back into the phase out range. Should I do the conversion again or put it in the Roth? What happens if I put the $5500 into the Roth and my income is higher the $133k. I wouldn't know until end of the year since its contingent on year end bonus.
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