# @thejoserafaelhernandez on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DFx8r6aR4kp
- **Gondola URL:** https://gondola.cc/posts/59826875-thejoserafaelhernandez-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/84ccbb49f0.jpg
- **Posted:** 2025-02-07T17:56:24.000+00:00
- **Account Owner:** Jose Hernandez (@thejoserafaelhernandez) — https://gondola.cc/thejoserafaelhernandez

## Caption

Have you ever heard that if you “make too much money”, you can’t invest inside of a Roth IRA? 🤔
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This is *partially* true
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How much $ you’re allowed to contribute (add) to a Roth IRA depends on 2 things:
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1) How you file your taxes (single, MFJ, etc)
2) Your income (MAGI to be more specific)
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(If you expect your income to be about the same this year and plan on filing the same way, you can use last year’s tax return as a decent guide to figure out where you fall)
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But long story short…
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If your income falls UNDER the income limits ($150k if single or $236k if MFJ)…
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you can max out your Roth IRA the “regular way”
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(I.e: just “add” the full $7k or $8k if you’re 50 or older)
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If your income is OVER the limit ($165k if single or $246k if MFJ)…
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you’re “blocked” from being able to contribute any new $ the “regular way”
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(There’s a 6% penalty that applies if you “overfund a Roth IRA” and that would apply here until you “fixed it”)
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And this is when the “Backdoor Roth” you always hear about starts coming into play 
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But if you plan to go down the “Backdoor Roth” route correctly…
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you need to plan carefully because it’s easy to shoot yourself in the foot from a tax perspective if you don’t know what you’re doing 
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If you have any questions on how the income limits work, the Backdoor Roth conversion or any investing related questions in general, drop them in the comments and I’ll answer as many as I can when I have the capacity to do so 🫡⠀⠀⠀⠀⠀⠀⠀⠀⠀
#investing #rothira #compoundinterest #stockmarket #indexfunds #financialfreedom

## Stats

- **Views:** 991
- **Likes:** 28
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- **Comments:** 1

## Tags

financialfreedom, stockmarket, indexfunds, compoundinterest, investing, rothira

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