Reported 8 months ago
High-income households can take advantage of a 'backdoor Roth' strategy to contribute to a Roth IRA despite income restrictions and build a tax-free income for retirement. This legal strategy involves opening a traditional IRA with no income limits and converting the funds to a Roth IRA. However, the effectiveness of this method in reducing taxes depends on current tax rates versus retirement tax rates. It's recommended to consult with a financial advisor to determine the best approach for your financial situation.
Source: YAHOO