You may already know that contributing to a Roth individual retirement account (IRA) is off-limits for people with high annual incomes. If your earnings put Roth IRA contributions out of reach, a backdoor Roth IRA conversion is a great option that lets you enjoy the tax benefits of a Roth IRA.

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How Does Backdoor Roth IRA Work?

A backdoor Roth IRA isn’t a special type of individual retirement account. Rather, a backdoor Roth IRA is a strategy that helps you save retirement funds in a Roth IRA even though your annual income would otherwise disqualify you from accessing this type of individual retirement account.

 

Roth IRA Income Limits in 2021 and 2022