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Backdoor Roth IRA: Definition and Step-by-Step Guide to Establishing One

Ever wonder what a Backdoor Roth IRA is and how to set a Backdoor Roth IRA up? Well this is the video for you! Honestly a Backdoor Roth IRA in my opinion just sounds sketchy, but in reality, it's not at all and it's completely legal! But before I go into what a Backdoor Roth IRA is and how to set it up you have to understand what a Traditional IRA and a Roth IRA are. Basically, an IRA retirement account is a bucket that you put your stocks into and each bucket determines how you will be taxed on that money. Roughly a Traditional IRA is an account where you can put your money in and it gets taxed at the end and there is not income limit in order for you to put your $6k in each year. A Roth IRA is an account where you get taxed on your money and then put it into your Roth IRA account. When you take the money out it doesn't get taxed. However, there are income limits in order to put money in. If you make over $198k per year and are married filing jointly you...