I do them every year! Amazing tool. I’d rather drop $7k into a Roth than a taxable brokerage account. Of course not everyone can do them if they have a lot of pretax IRA money given the pro rata conversion rules of after-tax vs pre-tax. But anyone who makes too much to qualify for a standard Roth contribution should look into it to see if they can make it work. I had my wife convert about $20k of IRA money at a pretty high tax bracket just to clean it out to facilitate back door Roth contributions. Been able to do them for years since.
Hi Zacc, really enjoyed your piece. What is your perspective on backdoor Roth conversions?
Btw, thanks for reading. I’ll post the next several articles in this series before too long. Thanks for subscribing.
I do them every year! Amazing tool. I’d rather drop $7k into a Roth than a taxable brokerage account. Of course not everyone can do them if they have a lot of pretax IRA money given the pro rata conversion rules of after-tax vs pre-tax. But anyone who makes too much to qualify for a standard Roth contribution should look into it to see if they can make it work. I had my wife convert about $20k of IRA money at a pretty high tax bracket just to clean it out to facilitate back door Roth contributions. Been able to do them for years since.