Income Too High To Deduct an IRA Contribution (US Tax) : personalfinance

by akoloy


I made a contribution of $6,000 to IRA for 2020 and $6,000 to IRA for 2021.

Now, whereas paying my taxes for 2020, I’m getting a message saying “To deduct a contribution, you can’t have a MAGI (modified adjusted gross revenue) of over $75,000, whereas being coated by a retirement plan at work.

So now, my $12,000 is caught in my retirement account, which I will not be capable of withdraw until retirement and I will not even get any tax deductions on the identical? Is my understanding appropriate?

Is there any workaround to this? Can I convert it to ROTH or one thing like that?



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