Backdoor Roth IRA for 2024!

Roth IRAs can be established and funded for high-income earners by using what is known as the “back door” Roth IRA contribution method. Many high-income earners believe that they can’t contribute to a Roth IRA because they make too much money and/or because they participate in a company 401k plan. Fortunately, this thinking is wrong. While direct contributions to a Roth IRA are limited to taxpayers with income in excess of $146,000 ($223,000 for married taxpayers, 2024), those whose income exceeds these amounts may make annual contributions to a non-deductible traditional IRA and then convert those amounts over to a Roth IRA.
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[@kerningandleading]

At 30 minutes, I really wish there was chapter markers so I 1) know what is going to be discussed in the video and 2) I could jump to where I need to in order to see an important part that I need to know more about.

[@marcbrunet9976]

Hello gentlemen. Thank you very much for the very informative presentation. I am now subscribed to your channel and I hope to learn even more. I was wondering whether I could re-characterize a quantity that I’d previously ré-characterize? I mistakenly did the first in an attempt to convert a Traditional IRA into a Roth IRA. The custodian is telling me I cannot do so but however I’m not seeing any IRS guidance saying that. I see guidelines stating that reversing a conversion is prohibited but nothing stating a re-characterization isn’t reversible. I’m attempting to do this before the tax window closes. Any help greatly appreciated!

[@seanyounk1]

17:24 Use Chunking, (over 2 or several years), to convert from traditional to Roth IRA and stay in a lower tax bracket 26:16 Year End Strategy - Meet with these guys in December to move forward with as many options at possible. Well, now I am even more confused. After just watching your Solo 401K Vs SEP IRA video from early 2023, I thought the SEP IRA was out completely. This video makes it appear we can max out our Solo 401K and our backdoor Roth IRA, but your other video made it seem like we would not do the SEP IRA at all. I presumed you were including the SEP Roth IRA in that video, correct? Edit: I just watched the Mega Roth Video. That was very helpful Thank you.

[@jamessteele8975]

Do I understand correctly that any existing traditional IRA account you have in your name held at all institutions would have to be converted prior to initiation of a back door strategy? Is this why many people would choose to do mega approach before the back door?

[@sonjasssggg4575]

Also, is a Rollover IRA considered in the 'traditional conversion rule? Rolled over from previous employer 403b plans.

[@dienekes4364]

I've got a 401k with about $20k in it from a company I used to work for. Can I use the "backdoor" strategy to move that money into a self-directed Roth IRA without having to pay taxes on that money?

[@Yugiboii]

Is that 20k in pre-tax or Roth or after-tax bucket?

[@dienekes4364]

@@Yugiboii Pre-tax. It's a defunked company 401k. And before you respond, I KNOW that there used to be some sort of back-door shift to a Roth, I just don't know if I can manage to do it with my 401k. None of this is cut-and-dried, so please don't be one of those people that thinks that one size fits all.

[@Yugiboii]

@@dienekes4364 any pre-tax conversion into Roth will create a taxable event since that money was never taxed before

[@jimwilcox946]

1) Are distributions from a Roth IRA non-taxable even for non-tax residents, specifically non-covered expats? 2) Will holding the Roth IRA for less than 5 years trigger any adverse consequences at expatriation of US citizenship … assuming non-covered status? 3) If I have only partially converted my traditional IRA to a Roth IRA prior to expatriation, which portion does the IRS consider converted … the contribution or the earnings? This is important because traditions IRA distributions to non-tax residents are taxed based on the tax table for the contribution portion and at 30% on the earnings portion.

[@ehickert]

Great presentation!! I am interested in setting mine up. However, I need a Tax Advisor that has experience with US citizens living abroad as this has additional considerations.

[@chaitanyautube]

@MatSorensen , Big fan of everything you guys do. I set up my SDIRA and Solo 401K with you guys and hoping to contribute the max of 66K into my newly set Solo 401K ( roth) account. Ran my payroll for approximately $77,000 to include the 22,500 employee roth contribution and 43,500 employer contribution. ( Did not go the tradiional 25% route). Employee part was easy to execute but having hard time executing the employer part. Do we have any way either the post tax bucket route or newly release employer roth guidelines available for me to make that 43,500 contribution into my Solo 401K roth account? Any help is greatly appreciated.

[@Really-AintBuyn-nit]

$6500 for the under 59 1/2 year olds? I thought it went to $7000 for 2024? And $8000 for older?

[@MatSorensen]

$7000 for 2024.. $8000 for catch up contributions

[@Really-AintBuyn-nit]

@@MatSorensen definitely doing catch up! Thanks for the reply.

[@grein46087]

Hey Guys - nice video, I have a question, I am interested in having two different Roth IRAs. One that I can invest in a real estate and another where I can trade options. And Would be interested in knowing If I can transfer some subset of funds between the two Roth IRAs.

[@briannewman9210]

You sure can

[@MatSorensen]

We actually answered this question in our upcoming Directed IRA Webinar. Look out for it next week on my page, we go in to detail on this!

[@grein46087]

@@MatSorensen Cool, will look for it.

[@grein46087]

@@MatSorensenCan you pass me the link where I can find the webinar.

[@JasonBuckman]

I max out my 401(k), and I'm front door.

[@jaybrowne7413]

Whats this new snazzy music guys?