Advertorial featured 3rd Thursdays in The Fox Chapel Herald > edwardjones.com | Member SIPC Edward Jones Open the (back) door to a Roth IRA There aren't many drawbacks to having a high income-but being un- able to invest in a Roth IRA might be one of them. Are there strategies that allow high-income earners to contribute to this valuable retire- ment account? Before we delve into that question, let's consider the rules. In 2023, you can contribute the full amount to a Roth IRA - $6,500, or $7,500 if you're 50 or older - if your modified adjusted gross income is less than $138,000 (if you're single) or $218,000 (if you're married and filing jointly). A Roth IRA is an attractive retirement savings vehicle, because earnings and withdrawals are tax free, provided you've had your account at least five years and you don't start taking money out until you're 59%. Also, with a Roth IRA, you won't be required to take required minimum dis- tributions (RMDS) when you turn 73, which will allow your account to potentially keep growing. But given your income, how can you contrib- ute to a Roth? You may want to consider what's known as a "backdoor Roth" strategy. Essentially, this involves contributing money to a new traditional IRA, or taking money from an existing one, and then converting the funds to a Roth IRA. The process is straightforward, but you'll need to consider potential tax implications. If you convert pretax assets from your tradi- tional IRA to a Roth IRA, the amount converted will be fully taxable in the year of the conversion. Consult with your tax advisor to determine if a backdoor Roth makes sense for you if so, it could be a valuable addition to your financial strategy. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Member SIPC Call or visit your local financial advisor today. Seth D. Thompson, CFP®, AAMS® Certified Financial Planner Office: 412-828-2437 Email: seth.thompson@edwardjones.com 201 Allegheny Ave. Suite 2 Oakmont, PA 15139 Thinking about CDs? Bank-issued, FDIC-insured 4.76% 1-year APY *Annual Percentage Yield (APY) effective 01/12/2023 CO offered by Edward Jones are bank issued and FDIC insured up to $250,000 (principal and interest accrued but not yet paid) per deposito per insured depository institution, for each account ownership category Please visit www.dc.govor contact your financial advisor for additional information Subject to availability and price change. CD values are subject to interest rate risk such that when interest rates rise, the prices of CDs can decrease CDs are sold prior to maturity, the investor can lose principal value FDIC insurance does not cover losses in market value. Early withdrawal may not be permitted. Yields quoted are net of all commissions, CDs require the distribution of interest and do not allow interest to compound CDs offered through Edward Jones are issued by banks and this nationwide All CDs sold by Edward Jones are registered with the Depository Trust Corp. (DTC) adno-271377 Advertorial featured 3rd Thursdays in The Fox Chapel Herald > edwardjones.com | Member SIPC Edward Jones Open the ( back ) door to a Roth IRA There aren't many drawbacks to having a high income - but being un able to invest in a Roth IRA might be one of them . Are there strategies that allow high - income earners to contribute to this valuable retire ment account ? Before we delve into that question , let's consider the rules . In 2023 , you can contribute the full amount to a Roth IRA - $ 6,500 , or $ 7,500 if you're 50 or older - if your modified adjusted gross income is less than $ 138,000 ( if you're single ) or $ 218,000 ( if you're married and filing jointly ) . A Roth IRA is an attractive retirement savings vehicle , because earnings and withdrawals are tax free , provided you've had your account at least five years and you don't start taking money out until you're 59 % . Also , with a Roth IRA , you won't be required to take required minimum dis tributions ( RMDS ) when you turn 73 , which will allow your account to potentially keep growing . But given your income , how can you contrib ute to a Roth ? You may want to consider what's known as a " backdoor Roth " strategy . Essentially , this involves contributing money to a new traditional IRA , or taking money from an existing one , and then converting the funds to a Roth IRA . The process is straightforward , but you'll need to consider potential tax implications . If you convert pretax assets from your tradi tional IRA to a Roth IRA , the amount converted will be fully taxable in the year of the conversion . Consult with your tax advisor to determine if a backdoor Roth makes sense for you if so , it could be a valuable addition to your financial strategy . This article was written by Edward Jones for use by your local Edward Jones Financial Advisor . Member SIPC Call or visit your local financial advisor today . Seth D. Thompson , CFP® , AAMS® Certified Financial Planner Office : 412-828-2437 Email : seth.thompson@edwardjones.com 201 Allegheny Ave. Suite 2 Oakmont , PA 15139 Thinking about CDs ? Bank - issued , FDIC - insured 4.76 % 1 - year APY * Annual Percentage Yield ( APY ) effective 01/12/2023 CO offered by Edward Jones are bank issued and FDIC insured up to $ 250,000 ( principal and interest accrued but not yet paid ) per deposito per insured depository institution , for each account ownership category Please visit www.dc.govor contact your financial advisor for additional information Subject to availability and price change . CD values are subject to interest rate risk such that when interest rates rise , the prices of CDs can decrease CDs are sold prior to maturity , the investor can lose principal value FDIC insurance does not cover losses in market value . Early withdrawal may not be permitted . Yields quoted are net of all commissions , CDs require the distribution of interest and do not allow interest to compound CDs offered through Edward Jones are issued by banks and this nationwide All CDs sold by Edward Jones are registered with the Depository Trust Corp. ( DTC ) adno - 271377