Backdoor Roths, frequently discussed, but often misunderstood.

Don't worry, though, because I'm about to make sense of it in this, the sixth episode of the

Retirement Planning Education Podcast.

Welcome to the Retirement Planning Education Podcast, where you can learn all about

IRAs and Roth IRAs, employer retirement plans, taxes,

Social Security, Medicare, portfolio withdrawal strategies, annuities, estate planning, and much more.

And now here's your host, Andy Panko.

Hi, welcome, everyone.

So let's talk about backdoor Roths today.

Discussed a lot, often not quite accurately described or understood. So we'll go through it all today. Now, I just want to clarify something,

the word backdoor is often said as backdoor Roth conversion. It is not. It is technically a backdoor Roth contribution.

So I'll discuss that and explain why that's the case, but I just wanted to get that out of the way

first. The proper wording for this is a backdoor Roth contribution, is how to say it.

So before I really get into it, I just want to mention it's a often talked about strategy.

It's a fairly popular strategy, especially lately.

There's lots of buzz about it.

And one of the reasons is it is in the crosshairs of legislators to potentially undo it.

The Build Back Better Act as of late 2021 was hot and heavy about getting rid of the ability to do

this backdoor Roth contribution process. Well, the legislation sort of died on the vine at the

11th minute, or 11th hour, to be determined if and when it gets resurrected, you know, here in early

2022, don't yet know if the Build

Back Better Act is going to get pumped up and come back to life, or if it does, if this provision

...