This step-by-step guide will teach you how to do the back door ROTH IRA for 2023. ROTH IRA explained for beginners 2023. ROTH IRA vs. Back Door ROTH IRA. Invest in a ROTH IRA with the S&P 500ETF VOO, VTI, SCHD or more.
#rothira #etfinvesting #voo
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1. Is the backdoor Roth IRA only needed for those whose income is above the MAGI?
2. How soon should funds be transferred from the traditional IRA to the Roth IRA and then from the Roth IRA to some other investment like stocks?
3. While contributing to the Roth IRA, if your earnings increase above the MAGI, what happens to the account?
Thankyou Professor G for the time, effort and good will you put in to make these videos. I am a beginner investor and I have some very basic questions. Investing money in the backdoor Roth IRA is like having a brokerage account without paying taxes on it? Is that like the 'positions' option instead of the cash option when you open the traditional IRA? I have a traditional IRA through my work, can I open a back door Roth IRA with that or do I open another traditional and then a Roth IRA?
Thankyou! Another great video!
Question: Some years I go over the income limits. Should I do the backdoor every year to be safe?
Hey Professor G! Besides VOO, what other etf would be a sound choice for a traditional IRA?
What happen when you already contributed to your Roth IRA the total amount per year and you still have money in your traditional IRA… can you do the back door conversion??
I've been looking for guidance on this so thanks for making this video, Professor G!
I'm new to this better late than never! It is mid jan but I have not contributed to the 2022 Roth IRA season. I believe I still have up to April 2023 tax day to contribute for 2022? Also, would still plan on contributing to the 2023 year as well. So that is 12500k (6k 2022 and 6.5K 2023). I'll just fill out two tax forms 8606 for 2022 and 2023. That sound right?
Great video!
Question: which of these two (vti, schd, schg) will you advise in a Roth IRA and what % allocation? Thanks
ShouldI reinvest my dividends back into the stock in my roth ira?
You missed a BIG issue that needs to be addressed. This doesn't work exactly like you say if you already have an existing traditional IRA. You need to explain how this could be a taxable event.
Not following…..why not just open a Roth, period.
Why open a traditional IRA to begin with and immediately transfer it to a Roth??
I don't get it…..
Mistake #4: Neglects to mention possible pro rata tax pitfall if one own traditional IRA balance from previous years which would result in taxes owed on this back door Roth IRA process.
Professor G, here's a question. Let's say this happens: Someone deposits money in a Roth IRA and buys some stocks with those funds, then later sells them for a profit, then keeps the cash in the IRA, then buys other shares and makes more profit, always keeping the profits (or losses) within the IRA. If the account grows, are the profits (capital gains) taxed each year, like a normal trading account, or are all transactions tax free if done within the Roth IRA regardless of capital gains or dividend payments on the investments? Thank you.
Great content Professor G. Thank you for covering topic. Really have a better understanding of this process now. 12:13
The following year, when you do another Backdoor Roth IRA, do you have to set up a separate Roth IRA account or can you backdoor into the same Roth IRA you established the first time??
In other words, if you keep doing this every year, are you going to have a bunch of separate Roth IRA accounts?
Hello! Love your channel? Question, did you consider Exxon M stock overpriced? Would be a good time to start a position?
Could you do this concept with long term growth stocks you currently hold. Sell them, then rebuy, paying the taxes on earnings now rather then later. Do it yearly as a way to pay taxes at that years rates rather then 20 year from now rates….??
Started new job. O.m.g forgot 2 do paperwork 4 payroll contribution 2 go N2 my Roth IRA opened 2022. Apply 4 State jobs ppl. More $, more days off, Gr8 insurance. Thanx 4 reminder
I'm glad you're talking about this subject; very informative. Thank you.
So basically anybody can do a backdoor ROTH IRA?
I’d just like to stress the need not to have ANY pretax funds in a traditional IRA, like a rollover IRA, or you’ll suffer the taxational wrath of the Pro Rata / aggregation rules!! I didn’t know this until recently, so I was unable to do a backdoor Roth in 2022, because I had money in a rollover IRA. The taxes would have been insane and didn’t make sense. Thankfully, I’ve now put my rollover IRA into my 403B and executed a backdoor Roth IRA for 2023! As always, thanks for the great info, Professor G!
This example is for funding the Roth with “post-tax” funds. Do you have an example using “Pre-tax” funds conversion to Roth (from a 401K or 403B) account? Can you still make conversions after retirement or do you need to be working and have taxable earned income? Thanks!
Hello Professor,
Question- when you move the money from IRA to Roth IRA following the backdoor hack, do we need to pay state taxes on that money moved between the accounts?
I know that I can contribute to a Roth IRA for Tax Year 2022 up until I file my taxes this year. Can I use my income for 2022 as the basis for contributing or do I have to use my income from 2021?
So my last question let’s say I sell a stock on Robin Hood and the money goes back in my brokerage account and then I use that money to purchase a stock from another company. Do I still have to pay tax my thinking is if I sell a stock and then take the money and throw it in my checking account. I had to pay a tax.
I have a Traditional IRA since 2017. I have used post tax money to fund it and bought some ETF's and stocks. I have never fill out that form 8606 to tell IRS that the money is after tax. Can I still make a backdoor conversion without paying taxes again?
Can you do a video of stocks that are not text so I guess it would be stocks that are qualified
I have a Roth IRA in my Robin Hood. What if I don’t max it out do I get penalized?
Hope this helps clear some stuff up!
Hello, I don't often comment, but really wanted to thank you for informative videos that make investing simple to all of us! <3 I'm in my mid 20s, just started investing and wanted to also ask you do you think that investing in VOO, SCHD, SCHG, SCHF is a good start? Or maybe SCHF is not neccesary? I've also considered switching SCHF for VXUS or a mix of VEA/VWO 🙂
Thank you I've been trying to figure this out. This guide helped so much!
Great video. Are mega back door Roths only available through your employer?