• Jeran Van Alfen, CFP®

Financial Planning Strategy to Know – Backdoor Roth

The Roth IRA is a valuable planning tool. It allows for tax-free withdrawals of accumulated gains in retirement. Recently, some Roth strategies have caught the attention of congress and may be eliminated soon. Currently, the Roth limits who can contribute based on earnings .This means that the Roth was intended for middle-income earners as a way to save for retirement. The backdoor Roth is a strategy that allows high wage earners to contribute to a Roth IRA when they normally would not be able to make the contribution. Strategies like the backdoor Roth are under scrutiny because of the large amounts of tax-free money that has accumulated over the years. Here is a quick explanation of the strategy:








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