How To Guide For: Understanding The Backdoor Roth IRA

A Backdoor Roth IRA is a technique for contributing to a Roth IRA when your income exceeds the contribution limit. There is no income limit on contributing to a nondeductible Traditional IRA, nor on converting a Traditional IRA to a Roth IRA. The IRS income limits restrict high-income investors from making Roth contributions. But, there are no income restrictions on conversions. These investors can contribute through the back door by making a nondeductible traditional IRA contribution and then converting to a Roth IRA. To get more in depth information on a Backdoor Roth IRA and how it works -- click the pictures below to read the articles.