A backdoor Roth IRA is a way for high-income taxpayers to fund a Roth IRA despite exceeding traditional income limits. Jose Luis Pelaez/Getty Images A backdoor Roth IRA is a completely legal strategy for high-income taxpayers to avoid the Roth's income limits. Backdoor Roth IRAs are really just a conversion, not a special type of retirement account. Opening a backdoor Roth IRA comes with important tax implications to consider. Visit Business Insider's Investing Reference library for more stories Roth IRA accounts offer tax-free growth on earnings and tax-free withdrawals in retirement, making it a popular long-term savings vehicle for anyone looking to build their nest egg.Those perks, however, come with a big asterisk: You can't contribute to a Roth directly if you exceed IRS-imposed income limits.

BING NEWS:
  • What Is a Backdoor Roth IRA?
    But they are closed off to high earners ... tax-free in retirement. Roth IRAs come with a disadvantage, however: They aren’t technically open to high-income workers. A backdoor Roth IRA ...
    04/21/2024 - 10:03 pm | View Link
  • How a Backdoor Roth IRA Works (and Its Drawbacks)
    Some high-profile personal finance commentators are big fans of the “backdoor Roth IRA.” I’m not — at least not for high earners ... tax-free investment earnings accumulation benefits.
    01/12/2024 - 11:00 am | View Link
  • Backdoor Roth IRA: Understanding the loophole that gives high-income earners the tax benefits of a Roth IRA
    It's relatively easy to do, but comes with some tax implications to be aware of. Opening a backdoor Roth IRA gives high-income taxpayers a way to capitalize on the benefits of a Roth despite ...
    11/3/2023 - 5:08 am | View Link
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