Back Door Roth Conversion

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What is a Back Door Roth IRA?

A backdoor Roth IRA is a conversion of Traditional IRA assets to a Roth IRA.

This is a great way for high income earners to put money away if you do not qualify for Roth IRA income limits. This is how it works, you put money in a traditional IRA, convert the account to a Roth IRA, you might need to pay some taxes based on your income, this would include the converted amount from your Traditional IRA too if you took a deduction. Or, if you make nondeductible contributions to a Traditional IRA which is money that you already paid taxes on, then you can convert it to a Roth without another tax bill.

I would suggest you look at your overall financial situation to see if this strategy makes sense for you. For your specific tax related questions consult with your tax advisor.

Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER TM and Managing Partner at Savvy Women Wealth Management in Carlsbad California.

We help women invest wisely and create custom financial plans for their way of living so they can enjoy a fulfilling retirement with peace of mind…
…without giving up their lifestyle.

If you would like to know if a Back Door Roth conversion is right for you then please schedule a strategy session.

We’ve found that many of our clients reach out to us when they have a financial issue or question surfacing for them.

If you have something coming up and would like to discuss or need a sounding board then please schedule a FREE strategy session. It’s over the phone, maybe 15 -30 minutes and we can see if it makes sense to talk more.

Many people schedule a FREE Strategy Session with us for the following reasons:
-They want to know if they are saving enough so they won’t run out of money in retirement.
-They want to know If they’re in the right investments.
-They would like to create a financial plan tailored to their lifestyle.
-They have some serious financial decisions to make and need a professional unbiased opinion.
-They know they need to do something but they’re not sure where to start.
Whatever it is, let’s talk.

This is approximately a 15 – 30-minute phone call where we can discuss your questions and or concerns and see if it makes sense to meet for a free consultation.
Click on the button below to schedule your FREE Strategy Session.

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