Timothy Sumer

#BackdoorRothIRA #Investing #Taxes The Backdoor Roth IRA is a perfectly legal, IRS-sanctioned method for high income earners to convert their traditional IRA or tradtional 401k to a Roth IRA. I briefly touch on the biggest advantages and drawbacks when comparing a Roth IRA with a traditional IRA before delving into the reasons why someone would need to use a Backdoor Roth IRA. The IRS sets income limits on taxpayers that prevent higher income earners from contributing to a Roth IRA. The Backdoor Roth IRA get around the income limits by converting an existing traditional IRA to a Backdoor Roth IRA. I go over the steps to complete a conversion to a Backdoor Roth IRA including setting aside money to pay the taxes on contributions to your traditional IRA or 401k when converting to a backdoor Roth. I finish off by going over some of the rules and potential drawbacks of converting to a Backdoor Roth. I hope you enjoy the video and find it informative. Please remember I'm not a