In this video, I will be covering the BACKDOOR ROTH IRA.
Funding a Roth IRA is the best way to take advantage of current low income tax rates and set yourself up for years of tax-free income in retirement. However, people with high incomes are not allowed to contribute to a Roth IRA directly. For them the only way into a Roth is through the back door — with a strategy appropriately known as the backdoor Roth.
What is a backdoor Roth IRA?
Here’s the key point to know before we go any further. Even though there are income limits on Roth contributions, there aren’t any limits on Roth conversions. You can earn as much as you want and still convert a traditional IRA to a Roth.
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DISCLAIMERS & DISCLOSURES
This content is for education and entertainment purposes only. Tray does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
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LEARN MORE ABOUT: IRA Accounts
CONVERT IRA TO GOLD: Gold IRA Account
CONVERT IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Are you considering a backdoor roth? Any video ideas you would like to see?
Financial goals
1) invest 15% gross income into retirement acct
2) if I reached max contribution into 403b? And can invest more, would u recommend paying off mortgage or investing into traditional Ira or another acct (I do not qualify for Roth)
I'm doing that with my 401k going to roll it into a regular IRA then convert it to my Roth IRA
Thank you. I've watched a few different videos on doing a back door, but none go into the tax implications. Your video was detailed and provided the extra information I've been looking for.
Tray, my financial goal is to fully retire at age 59½. All of my financial effort, work and hard earned $$ is invested to reach this goal. This maybe later than many in the F.I.R.E. community, but I will be Financially Independent. Hope all is well with you in your neck of the woods and look forward to your next video.
I’ve been waiting for this video, thank you very much!