Have you heard of the Backdoor Roth Contribution? If you earn too much, per the limits and rules of IRAs, you are unable to make a direct contribution to a Roth IRA. The Backdoor Roth Contribution could be a solution, but there are many factors and rules to consider, and complicated steps to take in order to properly implement this strategy.
To help make the analysis easier, we are offering the “Can I Make a Backdoor Roth IRA Contribution?” flowchart. It addresses key considerations, including:
- Multiple retirement accounts
- Pro-rata and aggregation rules
- Step transaction doctrine
- Step-by-step process for making a Backdoor Roth Contribution