rewrite this title in 20 words or less (do not provide multiple options): What is a backdoor Roth IRA and how does it help high earners save for retirement?
She worded it wrong. Traditional means pretax, Roth is post tax, after tax is another form of post tax. I rolled my after tax into a Roth IRA. You can go past the normal limits. Also you can do 4 times a year. I do it every quarter. Benefits of rolling the after tax into a normal Roth IRA is a wider variety of stock options. Instead of the limited choices in your 401k account.
I can’t believe she didn’t talk about the pro rata rule! If you have any money in a rollover IRA (like from rolling over an old 401k) this strategy is not as easy at is sounds and will cause taxation due to the pro rata rule. This advice is incomplete
6,500 at 8% interest is extra 520 dollars a year equals 7,020 dollars a year. 20 years you will get the 140,000 at 40 add 10 1.4 million no Roth needed jus simple math
It’s not about tax rates going up in the future. It’s the fact the if you properly invest for the long term, the S&P 500 grows over 10% APY. So the vast majority of people will pay a higher tax rate on investments that compound at 10% even the high earners.
I think back door Roth Ira use after tax you put in traditional Ira, then the 7000 buck is counted as your income, and tax again. So you pay double tax on it. Am I wrong?
They are not “giving” any benefit away. It’s wrong to penalize anyone for doing well if it’s gained legally. A flat tax (same for everyone) and equal “benefits” for everyone regardless of how much you make is fair.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
No they should not raise retirement age!!! In this economy 85,000 is Not High Income!! There are NO programs to help widows and widowers but everyone is supposed to pay college tuition off!!! I’m getting sick of these RINO and Democrat Socialists who pretend to care but decide to give our hard earned tax dollars to anyone coming in illegally across our borders but people who have paid into social security are now being robbed of that!!! They need to leave spousal benefits alone! The people collecting SS can’t really even work a side job to afford to live without having to be taxed by IRS up to 80%. Heck one pound of butter is 8 bucks now!
She worded it wrong. Traditional means pretax, Roth is post tax, after tax is another form of post tax. I rolled my after tax into a Roth IRA. You can go past the normal limits. Also you can do 4 times a year. I do it every quarter. Benefits of rolling the after tax into a normal Roth IRA is a wider variety of stock options. Instead of the limited choices in your 401k account.
I can’t believe she didn’t talk about the pro rata rule! If you have any money in a rollover IRA (like from rolling over an old 401k) this strategy is not as easy at is sounds and will cause taxation due to the pro rata rule. This advice is incomplete
McDonalds, for a family of 4 is now $50. And Roth IRA contribution limitations are 7k. The government hates you.
6,500 at 8% interest is extra 520 dollars a year equals 7,020 dollars a year. 20 years you will get the 140,000 at 40 add 10 1.4 million no Roth needed jus simple math
It’s not about tax rates going up in the future. It’s the fact the if you properly invest for the long term, the S&P 500 grows over 10% APY. So the vast majority of people will pay a higher tax rate on investments that compound at 10% even the high earners.
Fantastic breakdown, thank you.
I'm considering a Roth IRA, but how does it fit into my overall retirement plan? Can it really make a difference with tax-free growth and withdrawals?
You still want the backdoor if you want to go beyond the 401k limit
You did not address “how”!
I think back door Roth Ira use after tax you put in traditional Ira, then the 7000 buck is counted as your income, and tax again. So you pay double tax on it. Am I wrong?
She didnt explain the difference between 'emplyer' ROTH on a payroll vs. a ROTH individually vested.
Still did not understand
They are not “giving” any benefit away. It’s wrong to penalize anyone for doing well if it’s gained legally. A flat tax (same for everyone) and equal “benefits” for everyone regardless of how much you make is fair.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
This is why I hate this country. Why tf is any of this a thing. Just quit making stuff complicated for no reason
Do you pay taxes on the realized gains when you pull out your money from a Roth IRA?
Why use a backdoor Roth, can you just open a Roth and put your regular contribution directly without taking deductible?
The limits on Roth’s is ridiculous
I don't have a cent at all costs okay
I’m confused about 01:40, she said single earners earning less than 153K but the chart shows 153K plus for qualifications
Ahhhh, the rich media worrying about how to manage their wealth.
My wife has a ROTH IRA tattoo on her lower back.
No they should not raise retirement age!!! In this economy 85,000 is Not High Income!! There are NO programs to help widows and widowers but everyone is supposed to pay college tuition off!!! I’m getting sick of these RINO and Democrat Socialists who pretend to care but decide to give our hard earned tax dollars to anyone coming in illegally across our borders but people who have paid into social security are now being robbed of that!!! They need to leave spousal benefits alone! The people collecting SS can’t really even work a side job to afford to live without having to be taxed by IRS up to 80%. Heck one pound of butter is 8 bucks now!
Great less worry about the one percent. How about the struggling rest of us.
Backdoor?
Is the back door IRA banned now?
Wealth tax. No more billionaires. This system is made up just like money.