For instance, may we make contributions to a Roth IRA in 2024 if my taxes from 2023 indicate that our household income is below the threshold? But I am aware that we will exceed the household cap in April of next year when we submit our taxes for 2024. So I guess my point is, can your income be higher when you file your taxes for the same year if you donate in that same year?
The 2024 limit is based on your 2024 taxable income. If you’re nearing the threshold, consider maxing out your 401(k) and HSA.
And if you are above the limit entirely, open a Backdoor Roth IRA. Backdoor Roth’s page on Bogleheads.org
You can still do a backdoor Roth IRA even if you are not over the limit, so it is worth considering if you think you might be close.
Quick question - I started a Roth IRA before learning about the income limit, and lately, I have been getting closer to exceeding it. If I do hit the limit, can I just backdoor into the same account I have been using, or will I need a new one?
You can use the same account.
This is the right approach, but OP’s method seems more practical. It achieves the same result without needing to predict your annual earnings.