Backdoor Roth IRA Contributions: An Awesome Opportunity for High-Earners
The Roth IRA is one of my top three favorite types of accounts for retirement savings due to the many long-term tax benefits Roth IRAs provide. Unfortunately, contributing directly to a Roth IRA isn’t available to everyone. If you either don’t have enough earned income or your income, in general, is too high, you will not be able to contribute directly to a Roth IRA. For those of you high-income earners who make too much, there is a nice little planning workaround to consider.