Backdoor Roth IRA Explained (How It Works + Saves You Taxes)
In this video, we’ll cover the Backdoor Roth IRA — this is a strategy that can be a great way to get more money into your after-tax Roth IRA when you’re over the IRS income limits. However, there’s one key that not enough people talk about…the Pro Rata Rule! We’ll go over everything Backdoor Roth IRA!
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🕒 TIMESTAMPS 🕒
00:00 – Intro
00:39 – What is a Backdoor Roth IRA?
01:00 – What is a Roth IRA?
02:30 – How a Backdoor Roth works
03:52 – Who it’s best for
05:00 – How to determine taxes from this
06:50 – how to do this with Wealthfront
Disclosure
The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Wealthfront Advisers and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisors to discuss tax-related matters specific to their situation. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser, and brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC.
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Found out that its only easy to do a one time backdoor roth on Wealthfront. Each time you do a backdoor on Wealthfront your traditional automatically closes. This is not convienent for those of us who want to make monthly backdoor roth contributions. Wouldn't want to open another account each month. Its also not very efficient on Wealthfront. There is no option to hold contributions in cash in the traditional before converting to roth. Instead, it automatically invests in the traditional. I guess I'll be looking for another option until Wealthfront makes regular backdoor roth conversions better.
Hey Wealthfront/Tony,
Thanks for all the content!
A few suggestions:
1. Please get a collar mic or something, the volume changes in the voice are very off putting to hear
2. In addition to 1, please can you tone down the background music or just eliminate it altogether?
3. The audio needs to be softened/rounded, it's just harsh on the ears
4. Some visual aids would help, even just a whiteboard or something
5. If you can reduce the number of cuts/retakes, or atleast keep the positions of the camera the same, that would help make the videos feel smooth. Right now the zoom/distance changes and it's a bit jarring!