A backdoor Roth contribution is a great way for higher-income individuals to take advantage of additional tax sheltered savings for retirement.
This article will walk you through how to make a backdoor Roth Contribution. To find out what that is, start here. A backdoor Roth contribution is a great way for higher-income individuals to take advantage of additional tax sheltered savings for retirement. When you’re ready to move forward with implementing this strategy, we’ve detailed the steps below.
Although it may look like a complicated process, this strategy is relatively simple; however, it’s important to do this in the correct order.
It’s important to note that you may want to do this annually and each time you would repeat steps 2-4 above. The deadline for making your annual contribution is the tax filing deadline for that year (i.e. for 2020 the contribution must be made by April 15th, 2021).
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