What is a backdoor Roth IRA and how does it help high earners save for retirement?

Saving for retirement is a big concern for many Americans, even those who are considered high-earners. But sometimes, if your income is considered too high, you might miss out on some great savings options. That's where something called a backdoor Roth IRA comes in. CBS News business analyst Jill Schlesinger has more.
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[@m3talHalide-rt2fz]

If you have a large pre-tax 401 and were laid off, lowering your estimated income for the tax year, thats the ideal time to covert as much as you can afford to.

[@4happythoughts]

I’m confused about 01:40, she said single earners earning less than 153K but the chart shows 153K plus for qualifications

[@sabareeshsivakumar4346]

What she said was to qualify for Roth IRA but what they showed on screen was the income eligibility for backdoor

[@jpstairs]

Backdoor?

[@crazycool2863]

Is the back door IRA banned now?

[@alrocky]

No not banned, back door Roth IRA is still available. Caveat for pro rata rule if you have existing traditional IRA balance.

[@crazycool2863]

@@alrocky thank you. I read it somewhere that Biden’s new tax law is to ban back door ROTH, and also ban 1031 exchange to get more tax revenue..

[@keysay9897]

My wife has a ROTH IRA tattoo on her lower back.

[@KSWKREW]

Noice

[@Scott-yk5yy]

BOOM

[@edhooper1421]

You mean hubs?

[@ddduva4440]

Ahhhh, the rich media worrying about how to manage their wealth.

[@gregorypeterson9]

Great less worry about the one percent. How about the struggling rest of us.

[@yestyleryes]

then just contribute to your roth ira as normal since you fall under the income limit

[@sabareeshsivakumar4346]

1) 401k/403b at least contribute just enough to get employer match. 2) Roth IRA 3) High yield savings account. Let me know if you are looking for referrals.

[@CL-bu8mh]

I am poor enough to not need to go this route 🥲