Back Door Roth IRA Conversions

If you make too much money to contribute to a deductible IRA or even a Roth IRA, this episode may be of interest to you as we explain what a back door Roth conversion is and how it works.

Let’s start with the definition:

back door Roth conversion =  contributing non-deductible money to a traditional IRA and then converting it into a Roth IRA; when you do this in the same year, as long as you meet certain criteria, that conversion will be tax-free; basically, a back door Roth conversion is a way to contribute money into an IRA when you could not have done so by any other method

Listen in to find out how this can work out practically.