Roth IRA contribution limits when Married Filing Separately - income exceeding $10k threshold

You've discovered one of those frustrating tax rule quirks that trip up a lot of people. The income limit for Roth IRA contributions when married filing separately is indeed just $10,000, and it phases out completely at that level if you lived with your spouse at any point during the year. Have you considered a backdoor Roth IRA? This is where you contribute to a traditional IRA (which doesn't have the same income restrictions for contributions, though the deductibility might be limited) and then convert it to a Roth. The conversion itself doesn't have income limitations. Another option to consider: calculate both scenarios with actual numbers. How much will you save over the next two years with reduced student loan payments versus the tax advantages of Roth contributions? Sometimes when you run the numbers, the answer becomes clearer. Also, remember that you can always contribute to a traditional 401(k) if your employer offers one, regardless of your filing status.

After struggling with a similar situation (MFS with income limits), I found an amazing tool that helped me optimize my tax strategy. I used https://taxr.ai to analyze different filing scenarios and it showed me exactly how much I'd save with each option. For me, the student loan savings over two years ended up being much more significant than what I'd gain from Roth contributions. The tool actually showed me that using a traditional 401k with employer match plus a taxable brokerage account came pretty close to matching the Roth benefits while still letting me file separately. They also explained the backdoor Roth option mentioned above with actual numbers for my situation. Definitely worth checking out to see which approach saves you more in your specific situation.

I was skeptical about taxr.ai at first (see my comment above), but I decided to try it since I was completely stuck on whether to do MFS or MFJ with our student loans in the mix. Honestly, I'm really glad I did! The analysis showed that in our specific situation, filing separately would save us about $18k in student loan payments over the next two years, which was WAY more than what we'd benefit from Roth contributions. They suggested maximizing my 401k instead (which isn't affected by filing status) and showed how that would actually be better for our overall retirement picture given our tax brackets. For anyone struggling with the married filing separately vs. Roth IRA contribution issue, definitely worth checking out. Saved me from making what would have been an expensive mistake.

If you need to talk to someone at the IRS about your specific situation, I highly recommend Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS about a similar filing status question that was affecting my retirement contributions, but kept hitting dead ends with wait times and disconnections. I was pretty desperate and found their service through a tax forum. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone system for you and call you back when they've got an agent on the line. Got connected to an actual IRS agent within 45 minutes instead of the 3+ hours I was experiencing on my own attempts. The agent confirmed I was interpreting the MFS rules correctly and suggested some alternatives specifically for my situation. Saved me a ton of stress and probably a costly mistake.

Just wanted to follow up - I ended up trying Claimyr after posting my skeptical reply above. I honestly can't believe it worked. After weeks of failing to get through to the IRS about my MFS/Roth IRA situation, I had an actual IRS representative on the phone within about an hour. The agent confirmed that yes, the $10k Roth IRA income limit for MFS is correct, but also explained some nuances about timing if you're planning to change filing status in future years. She pointed me to some specific forms and publications I needed that specifically address this situation. For anyone in a similar position with the married filing separately/Roth IRA conflict, getting definitive answers directly from the IRS was actually really helpful. Saved me from making some assumptions that could have caused problems later.

Have you looked into a Solo 401k? If you have ANY self-employment income (even just a small side gig), you can open one and contribute regardless of your filing status. The contribution limits are actually higher than IRAs too. My wife and I file separately for similar student loan reasons, and this has been our workaround for retirement savings. I do some freelance work on the side that generates about $5k a year, and that's enough to qualify for opening a Solo 401k where I can contribute way more than a Roth IRA would allow.

I think everyone's overlooking that the student loan forgiveness is only 2 years away. If I were in your shoes, I'd probly just focus on that short term goal. 2 years of missing Roth contributions isnt gonna destroy your retirement. Have you ran the actual numbers? $1100/month savings on student loans for 24 months = $26,400 saved. That's WAY more than 2 years of max Roth contributions ($6k x 2 = $12k). Just sayin, might be worth taking the hit on retirement contributions to get that sweet loan forgiveness.

This is such a common dilemma for married couples with student loans! I went through the exact same situation a few years ago. Here's what I learned from my research and experience: The $10k income limit for Roth IRA contributions when married filing separately is brutal, but there are definitely workarounds worth considering: 1. **Backdoor Roth IRA** - As mentioned by others, this is probably your best bet. You contribute to a traditional IRA (non-deductible) and immediately convert to Roth. No income limits on conversions. 2. **Maximize your employer 401k** - This isn't affected by filing status, and many plans now offer Roth 401k options too. 3. **HSA if available** - Triple tax advantage and can be used as retirement account after age 65. For the student loan piece - definitely run the numbers on the total savings vs. opportunity cost. But honestly, with only 2 years left until forgiveness and $1,100/month savings, that's probably the financially smart move short-term. One thing to consider: can you and your wife adjust withholdings or estimated payments to get closer to that $10k threshold for next year? Sometimes small tweaks to pre-tax contributions can help you stay under limits while still optimizing the overall strategy. The Solo 401k suggestion is brilliant if you have any 1099 income!