Master The Backdoor Roth IRA - High Income Earners Can Sidestep Limits

Step into 2023 with a powerful strategy for your retirement savings: the Backdoor Roth IRA. Learn how to bypass income limits and enjoy tax-free wealth for life. Our guide simplifies the process, helping you avoid common pitfalls and maximize your Roth IRA contributions.

Whether you're a high earner or looking for smart ways to grow your retirement fund, this strategy offers a path to financial freedom. Embrace the opportunity to build wealth with tax advantages and secure your future.

Transform your financial journey with these essential reads:

⏰Timestamps

0:00 - Intro
0:57 - What is a Backdoor Roth IRA?
1:30 - Why Fund the Roth IRA?
2:30 - Roth IRA Income Limits
3:16 - Roth IRA Contribution Limits
4:13 - When NOT to use a backdoor
7:10 - When the Backdoor is viable
9:09 - How to Execute the Backdoor Roth IRA

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This video concerns Master The Backdoor Roth IRA - High Income Earners Can Sidestep Limits. But It also covers the following topics:

Backdoor Roth IRA Process
Tax Harvesting Techniques
Understanding IRA Contributions

Video Title: Master The Backdoor Roth IRA - High Income Earners Can Sidestep Limits

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#rothira #retirementplanning #taxfreeinvesting #financialstrategy #wealthbuilding #investmentguide
⚠️Disclaimer: I am not a financial adviser. These videos are for educational and entertainment purposes only. Please exercise due diligence before investing in any kind.

Copyright Notice: This video and my YouTube channel contain dialogue, music, and images that are the property of Jeff Teeples. You are authorized to share the video link and channel and embed this video in your website or others as long as a link back to my YouTube channel is provided.

© Jeff Teeples

[loakland]

ThanX Jeff.... Excellent video... One of the best I have seen about this subject on the internet.... It is a difficult subject but you explained it well.... Appreciate your hard work and efforts each week....

[carloluna]

awesome content! this is probably one of the most practical videos that explains how backdoor roths work. thank you for this very helpful nugget of information!

[peedtyke]

Thanks so much for the detailed explanation. lol you looked very serious compared to your eft portfolio videos 😁 it’s a crucial subject after all

[emanueledauria]

Great video! I think I made an excess Roth IRA contribution last week for the 2023 year. I didn't make any Roth IRA contribution for the 2024 year yet. What can I do at this point? Also my MAGI was below the limits in 2022. Does that count?

[christopherb]

Any advice on unwinding 2023 direct Roth contributions and investments, and doing a back door instead? Seems dumb I have to sell and withdraw just to end up in the same place

[levastories]

Thank you for such a great video, Jeff! I just want to double check! If I open an traditional IRA account and put just $7000 there(limit for 2024) and convert that money ASAP to Roth IRA, so my balance on traditional IRA will be 0$. And I don't have to pay tax from that $7000 converted

[RedMarsupial]

I currently have a funded Traditional IRA from a rollover. I'd prefer leaving it alone to avoid incurring taxes. Would it be better to just open up a new/separate Traditional IRA account to setup back door Roth, or will there be issues/concerns opening up another account?

[cristyfr]

Hi! Thanks for the explanation! Can I still do a backdoor Roth IRA for 2023v

[OfficialEdithLabell]

Hi Jeff, I was a bit stunned when watching your video. I’m new to all this I opened a Roth IRA last year but finally just started investing. I’m also filling jointly for the first time and we are above the limit. I had no idea about this. What happens if I already have a Roth IRA and an individual account with Fidelity. Can I still open a tradition IRA account and do it this way?

[fryboy]

Thank you Jeff! So the IRA contribution should be non-deductible, but should the conversion to the Roth IRA have any withholdings? My bank asked if I want to withhold any amount. Last year I did $0 withholding but for some reason when I got my 1099-R, the taxable amount in box 2 was the same as the contribution amount in box 1 ($6000), I don’t have any other IRA accounts and keep the account balance at $50 year round (that’s the minimum the bank requires to not close that IRA account)? Thanks so much for your help!

[sheivay]

When rolling over the Traditional IRA contributions to the Roth IRA, do we "recharacterize" the assets or do a "conversion"?

[stevenkelly]

I was slightly confused at the very end. You mentioned $13000, how did you get to that number? I thought it was only $6500 could be added across both accounts for the year.

[yiminzhao]

Hi Jeff, If I hold a "Rollover IRA" at Fidelity with balance in it from the 401K plan of my previous employers, and I also have a "Traditional IRA" and "Roth IRA", both with 0 balance. Can I still use this backdoor strategy without being taxed? In other words, will the money in the "Rollover IRA" trigger the "Pro-radar Rule"? Many thanks

[Phuongness]

I have a traditional Ira funded with post tax dollars, dates 2022, but didn’t get to convert it right away. Can I still convert it this year? Is there a limit of how many times you can convert per year?

[goldenwest]

@JeffTeeples. Does Rollover IRA also count for ProRata rules. I only have Rollover IRA from 401k moves. Thanks

[rjs]

When you say to “convert the funds from the traditional IRA to the Roth IRA”, do you mean I should just transfer the funds?

[deaconfrost]

Hey there. nice video. I did this conversion last year at the advice of my financial advisor. The confusing part is the taxes. I was never informed I would need to fill out a 8606 form. I did not know that I would be taxed 24% on the 14000 that my wife & I contributed on my taxes I am filling out now. I think even with your video, it's still not clear on why this money is being taxed. This is money I already paid income tax on, put it in a Trad IRA, converted it through my FA to the ROTH IRA, (Basically this just means a distribution is made from the Trad IRA), which i now being taxed again as income. I suspect something is not right. Can you clear this up for me?

[anthonyflagor]

Little confused...if you fund a backdoor IRA with post-tax Traditional IRA funds...what is the financial difference having an old funded traditional IRA and paying taxes on the amount of the roll over to Roth when you have to fund this backdoor process with post-tax Traditional IRA funds anyway?

[cbbcbb]

I assume you mean by "earned income" income from an employer? Not income from, say, rental property? Is that correct?

[diegohernandez]

I already have a roth ira but just recently exceeded the earnings per year to contribute into it. Can I do the back door Traditional IRA and then convert it into the existing IRA account I've had for years?