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:
Centered Financial, LLC is a registered investment adviser offering advisory services in the State of California, Utah, Texas and in other jurisdictions where exempted. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the techniques, strategies, or investments discussed are suitable for all investors or will yield positive outcomes. To determine which strategies or investment(s) may be appropriate for you, consult your financial adviser prior to investing. Any discussion of strategies related to tax or legal planning is general and is not intended as tax or legal advice. Please consult appropriate tax and legal professionals for recommendations pertaining to your specific situation.