Are you looking to make the most of your retirement savings with a Backdoor Roth IRA? In less than a minute, here’s a beginner’s guide to understanding this strategy for 2021.
A Backdoor Roth IRA is a way for high-income earners to contribute to a Roth IRA, even if they are above the income limits set by the IRS. Here’s how it works: first, you make a non-deductible contribution to a Traditional IRA. Then, you convert that contribution into a Roth IRA. This allows you to enjoy the tax advantages of a Roth IRA, such as tax-free growth and withdrawals in retirement, even if you are not eligible to contribute directly to one.
Keep in mind that this strategy may not be suitable for everyone, so make sure to consult with a financial advisor before proceeding. For more finance tips and tricks in under a minute, check out oneminutefinance on YouTube.
LEARN MORE ABOUT: IRA Accounts
CONVERTING IRA TO GOLD: Gold IRA Account
CONVERTING IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
0 Comments