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      01-23-2020, 12:04 PM   #74
zx10guy
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Quote:
Originally Posted by Rmtt View Post
Copy and pasted below, but the general gist of it. There is a little bit of work involved and some tax forms (8606) that have to be done later. If you "Google" it, you will see plenty of examples. Most of my stuff is through Vanguard outside of my work 401K.


A backdoor Roth IRA is a way for people with high incomes to sidestep the Roth’s income limits.

Basically, a backdoor Roth IRA boils down to some fancy administrative work: You put money in a traditional IRA, convert the account to a Roth IRA, pay some taxes and you’re done. Even though you didn’t qualify to contribute to a Roth, you get to go in the back door anyway, no matter what your income.
I looked at doing this but decided it wasn't worth it for me based on my limited expertise in this field. Right now, I have the privilege of being in a pretty high tax bracket. I'm leveraging the tax deferred options to the max that are available to me to lower my taxable income now. Based on my living habits, I'm banking on being able to live on the draw where my taxable income during retirement would be below the threshold where I get nailed with high taxes then. But it's all speculation on my part. I may be right and I may be dead wrong in my assumptions.
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Originally Posted by Lups View Post
We might not be in an agreement on Trump, but I'll be the first penis chaser here to say I'll rather take it up in the ass than to argue with you on this.
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