Psst…the Backdoor Route to a Roth IRA – Wall Street Journal – 03/03/14
Psst…the Backdoor Route to a Roth IRA
High earners can’t contribute directly to popular Roth individual retirement accounts. But there’s still a way in. We explain a simple two-step strategy that works for many people. WSJ’s Karen Damato explains.
You can’t contribute to a Roth IRA if your income is…
- over $191,000 married, filing jointly
- over $129,000 filing single
You can’t deduct an IRA contribution if…covered by a retirement plan at work with an income over $116,000 filing jointly, or over $70,000 filing single
Works best if:
- you don’t have any money in other traditional IRAs
