Tag Archives: Roths

Democrats want to cut way back on those ‘backdoor Roths’

Democrats want to cut way back on those ‘backdoor Roths’

Funding a Roth IRA through the “backdoor” has been a favorite move of aggressive savers in recent years. But the benefit may be much less prevalent if Democrats pass their ambitious multitrillion-dollar budget reconciliation bill. The backdoor Roth maneuver lets a high-income earners contribute money to a traditional IRA and then convert it into a Roth to skirt income limitations in the Roth program, but still take advantage of the tax benefits. Once the move is made – and the relevant… Source link

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