BACKDOOR ROTH IRA:
TOP DOLLAR INVESTOR
BENEFITS AND HOW TO CONTROL
In many ways, the Roth IRA is one of the greatest retirement and estate planning tools in existence for individuals to grow wealth over their lifetime.
After realizing the tremendous opportunity this provided high-income earners, legislatures closed the front door for Roth IRA contributions by setting a low-income ceiling for eligibility.
Legendary investor and billionaire Peter Thiel has used a Roth IRA to grow a $5 billion dollar account on which he legally owes zero taxes. Sounds too good to be true?
What is a Backdoor Roth IRA?
The good, old-fashioned version of the backdoor Roth IRA involves:
– 1: Making a contribution to a Traditional IRA
– 2: Converting the IRA to a Roth IRA
Backdoor Roth conversions allow high-income earners an opportunity to contribute to a Roth IRA, despite being over the low income thresholds.
Who is a Backdoor Roth IRA For?
The regular backdoor method is best used by individuals already maxing out a company retirement plan such as a 401(k).
Covered By Retirement Plan At Work
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