Do you believe that you’re ineligible for a Roth IRA because your income exceeds certain limits set by the IRS?
Well, I’m happy to tell you that you’re mistaken. The fact is, if you know how to play the game, you definitely can open a “backdoor” Roth IRA, easily and legally.
And doing so is a smart move. That’s because the Roth IRA is a great way to grow your wealth with a minimum tax downside. You see, you pay the taxes up front, and then, after the proper holding period, you pay no taxes.
Want to find out how to do it? Read my new article titled Tax Tips: Roth IRA After TCJA: The Backdoor Is Still Open.
Three ways our fact-filled article can help you:
- We’ll show you how to enter through the tax-free back door. First, create a traditional IRA and make a nondeductible contribution. Next, convert the nondeductible traditional IRA into a Roth IRA. That’s all there is to it. Best of all, you will incur no taxes as you’ll learn when you read the full article.
- We’ll also help you enter through the taxable backdoor. Let’s say you own a traditional IRA that is worth $12,000 funded entirely with deductible contributions. Next, you create a second traditional IRA and fund it with a $6,000 nondeductible contribution. All you have to do then is convert that second IRA to a Roth IRA. You’ll get all the details when youread the full article.
- You’ll learn why the backdoor Roth IRA strategy is a reliable one. The backdoor Roth strategy has been around for a good nine years and has experienced no trouble that we’re aware of. We also like the recent notations in the legislative history and the comments from the IRS spokesperson that show approval of the strategy. To find out more, read the full article.