Tag Archives: Form 8606

Back door ROTH IRA

For high-income taxpayers, contributing directly to a Roth IRA is often prohibited by IRS income limits. However, the Backdoor Roth IRA strategy remains a legal and effective workaround to access tax-free growth. While the strategy is simple in theory, a specific IRS regulation known as the pro-rata rule can turn a tax-free conversion into a […]

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