If you earn too much, you are unable to make a regular contribution to a Roth IRA. But, there is a workaround called the Backdoor Roth Contribution. There are many factors and rules that must be considered, and complicated steps to take in order to properly implement this strategy, without penalty. We find this strategy can create greater wealth for high-earning clients in the long-term, and it may be worth your time to implement.
To help make the analysis easier, we have created the “Can I Make a Backdoor Roth IRA Contribution” flowchart. It addresses key considerations, including:
Multiple retirement accounts
Pro-rata and aggregation rules
Step-by-step process for making a Backdoor Roth Contribution
Our investment management service streamlines the contribution, investment operations, and tax reporting steps for our clients. Contact us to learn more.