We make too much to contribute to ROTH IRA's. I am told I can move money into it anyway, with no limit, but I am not sure the process.
1. What kind of account does it need to come from?
2. What is the best way to take advantage of this?
3. Any other details/comments/considerations for this process?
C B
Favorite Answer
I am not sure about the description about a "back door" Roth IRA contribution. You may want to roll over some of the money from a traditional 401k into a Roth 401k or Roth IRA. Instead of paying the income taxes due from the assets within the 401k, you use other after tax savings outside of the 401k to pay the taxes. In this way the amount paid for the income taxes represent the contribution to the Roth IRA. You may want to confirm the details with a qualified tax adviser.
Caren
are you maxing out your 401K at work for 17,500 a year?
do you have all your debt paid off, including your mortgage?
spouse is getting her $5,500 a year into her spousal ira?
kids college money socked away?
then google how to open a non-tax deductible ira