Let’s say I’m MFJ and our modified AGI for 2021 will be $202,000, or $4,000 into the RIRA contribution phase out. Working through the Pub 590 worksheet 2-2, it simply says my max RIRA contribution is $3,600, based on my max IRA contribution amount of $6,000 for 2021. My question is, if I contribute the $3,600 to my RIRA, must I also contribute the remaining $2,400 to a TIRA? Logically, it seems I should as my max reduced contribution is a % of my total contribution…meaning it all must be contributed…I would think. Is my thinking correct, or is the reduced amount an isolated max amount that has nothing to do with any other TIRA contribution I make, other than when combined they may not exceed the annual IRA max of $6,000?
No, you aren’t required to contribute also to a traditional IRA. The permitted Roth contribution is figured as a percentage of the allowed overall contribution, not a percentage of the total contribution you actually made.