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      02-21-2020, 11:51 PM   #89
roastbeef
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Quote:
Originally Posted by Rmtt View Post
Copy and pasted below, but the general gist of it. There is a little bit of work involved and some tax forms (8606) that have to be done later. If you "Google" it, you will see plenty of examples. Most of my stuff is through Vanguard outside of my work 401K.


A backdoor Roth IRA is a way for people with high incomes to sidestep the Roth’s income limits.

Basically, a backdoor Roth IRA boils down to some fancy administrative work: You put money in a traditional IRA, convert the account to a Roth IRA, pay some taxes and you’re done. Even though you didn’t qualify to contribute to a Roth, you get to go in the back door anyway, no matter what your income.
there is zero taxes to be paid in a backdoor roth. my wife and i each max out a roth each year. i write a check to my guy and he just does it. not complicated at all on our end.
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