Is the Backdoor IRA Right For You?

By Aahil

Finance

October 20, 2022

Many high-earning professionals will have to use the backdoor to contribute $6000 or $7000 to their Roth IRAs because their salary is too high to do it directly.

It is more crucial than ever to complete this before the end of 2021 since legislation that is pending could abolish this option.

Unless your income is reduced to a level the government deems low enough to allow a direct Roth IRA contribution, you might never again have the opportunity to make a contribution to a Roth IRA.

1. What purpose does this serve 2. Fancy pants high earner, your income is too high to qualify for a typical IRA tax deduction. 3. You may still contribute in a non-deductible manner. 4. You continue to pay the same taxes and now have more money in an IRA.

The FAQ about Backdoor Roth

Do I have to start both a standard and Roth IRA? 2. You do indeed need to create these accounts.

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