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What is a Backdoor Roth IRA and Who Should Use One?

What is a Backdoor Roth IRA and Who Should Use One?

For many high-income earners, IRS income limits prevent direct contributions to Roth IRA accounts. Enter the backdoor Roth IRA – not a special type of account, but rather a perfectly legal transaction sequence that helps higher earners access Roth IRA benefits despite income restrictions. Here’s how it works…