rewrite this title in 20 words or less (do not provide multiple options): 12 Things You Must Know About A Backdoor Roth IRA (Including If It’s Worth The Hassle)
If you had a previous job with a 401k and you already rolled it over to a Roth and considering doing a back door think again you maybe subjected to taxes.
Thank you. Very helpful information. A lot of information about this topic on YouTube is for non high income earners. No one captured the “gotcha” as well as you.
Great video! For the spreadsheet, I wonder if it'd be a more fair comparison to add an extra 25% (or whatever the taxes are) on the initial traditional IRA contribution and see what the final value is after 20 years and after taxes. Reason is you can usually contribute more because is pre-tax dollars.I know this might not be true if you are hitting the limits, or if you get the tax break at the end of the year, but I think the comparison is worth it for people trying to weight this against a 401K.
In order to do a backdoor IRA, you can leave your traditional 401k in your prior employer 401k if you have the amount required instead of rolling it to an IRA. This way you can do a backdoor IRA without any issues
Excellent, excellent, excellent explanation! Very comprehensive, thanks!
so does it mean the trick is to be self-employed to do the mega backdoor if I want the push the max into ROTH?
Can you do Roth conversions or a Mega backdoor Roth conversions from a SEP IRA?
Thank you for this explanation!
This video is so informative. Thank you!
If you had a previous job with a 401k and you already rolled it over to a Roth and considering doing a back door think again you maybe subjected to taxes.
Thank you. Very helpful information. A lot of information about this topic on YouTube is for non high income earners. No one captured the “gotcha” as well as you.
Great video! For the spreadsheet, I wonder if it'd be a more fair comparison to add an extra 25% (or whatever the taxes are) on the initial traditional IRA contribution and see what the final value is after 20 years and after taxes. Reason is you can usually contribute more because is pre-tax dollars.I know this might not be true if you are hitting the limits, or if you get the tax break at the end of the year, but I think the comparison is worth it for people trying to weight this against a 401K.
In order to do a backdoor IRA, you can leave your traditional 401k in your prior employer 401k if you have the amount required instead of rolling it to an IRA. This way you can do a backdoor IRA without any issues