Reported about 1 month ago
If you're earning $275,000 a year, contributing directly to a Roth IRA is impossible due to income limits, but a backdoor Roth conversion offers a solution for high earners. This strategy allows you to transfer funds from a pre-tax retirement account to a Roth IRA, avoiding RMDs and enabling tax-free withdrawals during retirement. While this method can save on taxes if you expect to be in a higher tax bracket after retirement, it's essential to consider the upfront tax bill and consult with a financial advisor before proceeding.
Source: YAHOO