“Back Door” Roth IRAs Officially Get Green Light from IRS
Posted on July 27, 2018
The IRS recently published some great news, especially for high income earners, regarding "back-door" Roth IRAs.
For those of you that are unfamiliar with this term, the back-door Roth allows high income earners to bypass the Roth IRA contribution income limits. It works like this: if you are under 70.5 years of age, you can make a nondeductible traditional IRA contribution. For 2018, you can contribute up to $5,500 ($6,500 if you are 50 or over). Your high income is not a problem as there are no income limits on nondeductible traditional IRA contributions. Next, you convert your 2018 traditional...