Latest News

What Is a Backdoor IRA?

As Todd Campbell explains in this Motley Fool article, there’s no such thing as an official backdoor Roth IRA.  Because high-income earners cannot directly contribute after-tax money to a Roth IRA, they must fund one through the backdoor approach.  Note, traditional IRAs have no income limit for contributions.  They can be converted into Roth IRAs.  Thus, individuals can fund a traditional IRA with nondeductible contributions, and then later convert the account into a Roth IRA.  This maneuver is commonly called the backdoor Roth IRA.  It allows high-income earners to get the same Roth IRA benefits as everyone else.  However, it is only for those who file income taxes jointly and have household income above $193,000 in 2019.  Read the full piece by Campbell here.



Notice: The link provided above connects readers to the full content of the posted article. The URL (internet address) for this link is valid on the posted date; cannot guarantee the duration of the link’s validity. Also, the opinions expressed in these postings are the viewpoints of the original source and are not explicitly endorsed by AMAC, Inc.; the AMAC Foundation, Inc.; or


What's Your Opinion?

We welcome your comments. Join the discussion and let your voice be heard. All fields are required

Website by Geiger Computers