Unlike with traditional IRAs, Roths do not provide tax savings, so anyone converting such funds to a Roth must pay federal income taxes on the amount converted.

HUNTSVILLE, Ala. (WAFF) - A backdoor Roth conversion is a strategy used by high-income earners to contribute to a Roth IRA, even when their income exceeds the IRS limits for direct Roth contributions.

“We save $7,000 per month in our taxable account, and we are both maximizing our 401(k) plans.” ...

Few people will dispute the fact that Roth IRAs are an incredibly powerful way to grow wealth. Unfortunately, getting a significant amount of money into a Roth account is tricky. In 2025, annual ...

Owning high yield dividends, doing backdoor conversions, and custodial Roth IRAs are just a few options Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial ...

I’d like to ask about the backdoor Roth IRA. Say you are over the income limit for Roth contributions, so you make a traditional contribution with no tax deduction and then do a backdoor Roth. Is that ...

Retirement planning can feel like solving a jigsaw puzzle, especially for high-income households. If you're earning too much to qualify for a Roth IRA directly, you might assume that the Roth IRA's ...

High-income households can use what's called a "backdoor Roth" to utilize a Roth IRA despite the program's standard income restrictions. This can be an effective way to build a tax-free stream of ...

Tax strategy doesn’t just happen in April. While it may feel like you just filed your 2024 taxes a minute ago, the time to set yourself up for success in your 2025 taxes is now. Most high earners with ...