Feb 25, 2020
Have you ever heard of a backdoor Roth IRA? Yes, it IS a real thing. And no, it’s NOT something you do in the bedroom! A backdoor Roth IRA is a way to save for retirement if you want the benefits of a Roth IRA but don’t qualify for one. So, when would you want to use a backdoor Roth IRA?
On this episode of Queer Money, we’re sharing what you need to know about backdoor Roth IRAs. We review the tax benefits of the Roth IRA as well as its income limits on contributions, explaining how the backdoor Roth affords people who earn too much in a given year the advantages of a Roth—without the restrictions.
We also discuss the results of our Queer Money Facebook Group poll on taxable income, define the concept of modified adjusted gross income (MAGI), and offer examples of circumstances when YOU might take advantage of a backdoor Roth IRA. Listen in for the step-by-step process of initiating a backdoor Roth IRA and learn how a financial advisor can help you (no matter how much you make) take advantage of loopholes like this one!