Backdoor Roth IRA
InvestingA strategy for high earners to contribute to a Roth IRA by first making a non-deductible Traditional IRA contribution, then converting.
Example
Example: Consider an investor building a $100,000 portfolio. Backdoor Roth IRA — a strategy for high earners to contribute to a roth ira by first making a non-deductible — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.