The Backdoor ROTH is an advanced planning strategy for high earners and big savers. Should you use a Backdoor ROTH?
Two reasons why you'd use a Backdoor ROTH strategy is:
1. You are phased out of making ROTH Contributions due to your high income.
2. You are a big saver and have already maxed out your 401(k) contributions
The process to implement a Backdoor ROTH will depend on if you are doing the smaller Backoor ROTH or the MEGA Backoor ROTH.
I also cover the biggest mistake I see when people attempt a Backoor ROTH without assistance. The pain in the butt "pro-rata rule".
This is not a ROTH vs. Traditional debate. You can max out all traditional contributions if that is your tax strategy and then take advantage of the Backdoor ROTH strategies!
The Backdoor ROTH is an advanced planning strategy for high earners and big savers. Should you use a Backdoor ROTH?
Two reasons why you'd use a Backdoor ROTH strategy is:
1. You are phased out of making ROTH Contributions due to your high income.
2. You are a big saver and have already maxed out your 401(k) contributions
The process to implement a Backdoor ROTH will depend on if you are doing the smaller Backoor ROTH or the MEGA Backoor ROTH.
I also cover the biggest mistake I see when people attempt a Backoor ROTH without assistance. The pain in the butt "pro-rata rule".
This is not a ROTH vs. Traditional debate. You can max out all traditional contributions if that is your tax strategy and then take advantage of the Backdoor ROTH strategies!