Follow @calltoleap for more beginner investing videos!🥸 Watch my beginner's investing class in my link in bio to learn more.🫣 SAVE this video for later and SEND this to a friend.👥 -The backdoor Roth IRA is a strategy used by high earners for converting a traditional IRA to a Roth IRA. -Using this strategy, you can contribute to an IRA and roll them over to a Roth IRA or convert an entire IRA to a Roth. -The backdoor Roth IRA strategy is a legal way to get around the income limits that usually prevent high earners from owning Roth IRAs. -The backdoor Roth IRA strategy is not a tax dodge—in fact, it may incur higher taxes when it’s established—but you'll get the future tax savings of a Roth account. -The backdoor Roth IRA strategy is also beneficial for someone who anticipates having funds leftover in their traditional IRA because they can pass the money on to their heirs in a Roth IRA. 3 ways to use the backdoor Roth IRA: 1. Contribute money to an existing traditional IRA and then roll over the funds to a Roth IRA. Or you can roll over existing traditional IRA money into a Roth—as much as you want at one time, even if it’s more than the annual contribution limit. 2. Convert your entire traditional IRA to a Roth IRA. 3. If your company 401(k) plan allows conversions, you can roll your 401(k) account over to a Roth IRA. Hope this helps! Let me know if you have questions below! -Steve🐢 #calltoleap #financialfreedom #financialliteracy #money #personalfinance #investing #millionaire #makemoney #entrepreneur #stockmarket #stocks #ETFS #rothira #backdoorrothira #taxhacks @Chase @AmericanExpress @Citibank @CapitalOne @Discover @wellsfargo @chime @bankofamerica @mint @yahoofinance @wealthfront @tdbankcanada @fidelity @investopedia @marketwatch @marketwatch @vanguard @tdameritrade @tdbank @cnbc @ynab @sofi