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Backdoor Roth Ira

oboloo Glossary

Backdoor Roth Ira

A Backdoor Roth IRA is a strategy that enables individuals with incomes too high to contribute directly to a Roth IRA to sidestep the income limits. This involves making an after-tax contribution to a traditional IRA, which can then be converted into a Roth. Though it is widely considered a legal technique, the IRS does not officially recognize this as a way of investing in a Roth IRA.

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