Backdoor Roth IRA – How Does It Work?

by | Aug 2, 2022 | Backdoor Roth IRA | 31 comments

Backdoor Roth IRA – How Does It Work?




Like, Comment, and Share my videos!
🔔 SUBSCRIBE HERE 🔔

💯 LET’S CONNECT 💯
❤ Patreon @ Jake Broe 👉
📷 Instagram @JakeBroe 👉
🐦 Twitter @Broe_Jake 👉

👇 👇 Watch My Other Videos Here 👇 👇
★ Have an Old 401k? Should You Rollover to an IRA?

★ The HSA Explained – Do You Need a Health Savings Account?

★ Custodial Roth IRA for Your Child? Good Idea?

📈 Get a FREE Stock When You Join Robinhood:

You can support my channel by shopping on Amazon!
Click the link below and then just buy anything you want!

► ► ►

📷 📷 My YouTube Equipment 📷 📷
► My Camera 👉
► My Wide-Angle Lens 👉
► My Wireless Microphone 👉
► My Shotgun Microphone 👉
► My Lighting 👉
► My Light Diffusers 👉
► My GorillaPod 👉
► My Tripod 👉
► My SD Card 👉

What flag is that? 👉
What is your background? 👉

================

📚 📚 Books That Changed My Life 📚 📚
📗 How to Win Friends & Influence People 👉
📕 Dumbing Us Down 👉
📘 Quiet – The Power of Introverts 👉
📙 The Red Queen 👉
📔 Rich Dad Poor Dad 👉
📒 Why Nations Fail 👉

================

Fidelity IRA Conversion

Vanguard IRA Conversion

Charles Schwab IRA Conversion

Pro Rata Rule

================
#RothIRA #BackdoorRothIRA #RothIRAConversion
================

DISCLAIMER:
This video is for entertainment purposes only. I am not in any way acting as an agent or representative of the Department of Defense or United States Federal Government when presenting this information. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video.

See also  Reasons to Avoid Longing for a Tax-Free Retirement

ADVERTISER DISCLOSURE:
Jake is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Additionally, other referral links are included and this channel does receive compensation for sending traffic to partner sites. Shopping through our links is an easy way to support the channel and we appreciate and are super grateful for your support!…(read more)


LEARN MORE ABOUT: IRA Accounts

CONVERT IRA TO GOLD: Gold IRA Account

CONVERT IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA


Truth about Gold
You May Also Like

31 Comments

  1. Jake Broe

    Thanks for watching everyone! Be sure to give this video a LIKE if you found it informative. If you know something I don't about this process, then leave a comment down below to help the community!

  2. Shahed Chowdhuri

    At 14:45, you suggest that we should zero out any balance… how do we do that if we can’t convert it and can’t withdraw it?

  3. Kratos

    Sorry I confused , opening both 0$
    Tradicional ira and Roth IRA
    BUT I ONLY MAKE 20k to 28k
    If these for me or only if make over 100k
    Please I ready but confused

  4. B Y

    Hi Jake, I am in the phase-out range for Roth IRA contribution and not eligible for Traditional IRA deduction. Would you suggest I put all $6000 in Traditional IRA and do the conversion?

  5. Vivek Singh

    Awesome information. Now I feel comfortable for backdoor R-IRA.

  6. gsquared23

    Great video, if YouTube was fair it’d have way more views

  7. Dhavisito

    Can you make a video of what specific Index founds I can buy for the Roth IRA ? Thank you

  8. David Wellington

    I’m a little confused: at around 11 min you said you never reached the deduction limit for the traditional. Isn’t the deduction limit set by your gross income… or did you mean to say: you never surpassed the contribution limit for the traditional?

  9. Janny Liu

    i have rollover IRA (pre tax from previous 401k), is it considered as traditional IRA or not?

  10. demerit5

    This is hands down the best Backdoor Roth video on YouTube

  11. Nkem Nnanedu

    Hi jake, I had a job I resigned from a month ago, can I roll over my traditional 401k to Roth IRA to fidelity bank instead of rolling it over to my new job which is my tsp account. I

  12. Joe Rossomando

    Question, why would someone put money into a traditional IRA and then back door the 6,000 into a roth? Wouldn't you put that into the Roth from the start? And then if you have a traditional IRA you would roll it into your current employer's 401k? How does that make you able to backdoor into a roth? Sorry I think I missed something. Thanks for your help!

  13. Cody Kale

    Great video. I have a question, if my employer does not offer any type of retirement plan can I deposit money into a Traditional Roth to get the tax deduction, and then do a back door Roth conversion as well? Thanks in advance!

  14. Jimmy

    This is kind of a weird question, but let's say someone makes less than 64k. If they put 6k into a traditional ira and receive the tax deduction for doing so, can they then do the backdoor roth ira? In this scenario they would get a tax deduction for the traditional ira contribution and then their money would grow tax free in their roth ira. So no taxes at all on any of that invested income. Is that correct?

  15. Hans Schotterradler

    Hmm, I put $7000 into my Roth IRA with Fidelity; but I'm projected to earn ~$160k this year. Wasn't aware of the income limit.

  16. Chris Brisson

    Good luck, guys, trying to get your wife to watch this video so that she might go along with the plan. "Just sign here, honey."

    You know, if my retirement savings were all Roth, I'd be having way too much fun now.

  17. Mary Smith

    Such excellent information. It’s hard to just go to a bank and set this up, between the fees and the less than stellar explanations and the pressure, it is easy to make poor choices. Thanks!

  18. Vandana K

    Thanks Jake. Quick question – I don't have a traditional ira account so i fit into the 2nd scenario where you suggested to zero out. Is there a time limit as i did not create the account/start contributing yet. Can I still do it? Are there any deadlines/rules? Thanks in advance.

  19. Swing4TheRing

    Jake, can you explain how a "self directed Roth IRA" works and using an LLC to purchases investments with it? Thank you!

  20. Sharon Planz

    Hi Jake, thanks for the information. I’ve had a Roth for some time but, haven’t been able to contribute. I just opened a traditional IRA with vanguard and I’m waiting on my $6k to clear so, I can convert it before the 2020 contribution year deadline! So glad I found your channel!

  21. 梦想成真Dream Cometrue

    What is the difference between rollover IRA and traditional IRA? I have an old 401k that needs to be rollover, should I rollover to a traditional IRA or a rollover IRA? Which one is better? Thank you!

  22. KK Tan

    Great video Jake!
    Question, I want to contribute $6k to traditional IRA for 2020, make no investments, then convert to Roth in 2021. Will I have to pay tax on the conversion on 2021 tax forms? Thank you!

  23. vol43

    Thank you for yet another extremely helpful video!

  24. Abhijeet Nayak

    It can't be explained in more simpler words.

  25. Danny Creech

    I love how you didn't miss a beat when explaining this. I have got bits and pieces over the past few years but no clear explanation like this. My wife and I make over 209k. We have a good bit in simple ira, personal ira and tsp. We even contributed to our simple ira thinking that we wasted our money last year because we made too much. So I'm going to contribute and max out our 2020 ira's. Then convert all our traditional ira's to roth. From now on I will max out or traditional ira's and convert them to roth as soon as they fund. It's going to sting! But before we have to pay for everyone's college, healthcare, tv, gas, food, and virtual reality life I want to be enjoying tax free retirement. Plus I can draw dividends up to $78,000 federal tax free. And none of that will be considered income so they won't tax social security much if any. You helped fill in the puzzle pieces for me. Thank you!!

  26. Những Ngày Xưa Thân Ái

    Can I do a backdoor Roth IRA if I currently participate in an employer's retirement plan already ?

  27. beti05

    Jake. I understand the concept of Roth IRA, but the way you specifically explained around 10:50-12min mark, could the IRS penalize you if they are aware of the purpose?
    And doors it matter what month of the year this happens?

  28. CoyoteofWallSt

    Great channel and videos.

  29. Fe H

    Hi, maybe I missed it but I don't understand #2 part 2 – Empty out Traditional IRA or open roth. If you open the roth directly how do you convert it to the backdoor roth? I was told to open a traditional then convert it a roth and that becomes the back door roth. TIA.

  30. Rob U_73

    I tell everyone that your goal should be to make so much more money when your retired. For some reason, people think $40K a year is enough to live comfortably. Maybe in some real low cost of living areas, but I'm hyperfocused on investing as much as we can.

U.S. National Debt

The current U.S. national debt:
$35,866,603,223,541

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size