Should we get married before the end of the year?

Seeking Advice
21

Valen said:
@Ellis
It might be possible now too.

She doesn’t have a traditional IRA, just a 401k and Roth IRA. I’ve over-contributed to my Roth before and had to pull out the excess. I think recharacterizing would mess up future backdoor Roths because of the pro-rata rule, right?

22

@Lior
If neither of you has pre-tax IRA assets, you can recharacterize to traditional IRAs (nondeductible) and convert. Taxes are only owed on earnings if traditional IRAs are empty or close to empty by year-end. Each person files a separate 8606.

23

@Lior
You’ll pay taxes on earnings either way. Recharacterizing is often better than returning excess contributions.

24

Run your 2024 taxes as single and married to see which works better! My spouse and I had a similar situation and chose to get married a few months earlier in December but kept the big wedding for the summer. Now we celebrate both dates!

25

This isn’t tax advice, but don’t rush into marriage just for finances.

26

Quincy said:
This isn’t tax advice, but don’t rush into marriage just for finances.

We’re already getting married, so this is just a way to make the most of it financially.