Hi everyone I'm Laura Adams and you're listening to the Money Girl

podcast where I explain what you need to know about money. I love helping you put all the pieces of the puzzle together

by giving you information, tools, resources, and inspiration to live rich and love the journey. So thank you very much for downloading the show.

For the past couple of episodes we've been talking about retirement accounts,

specifically common IRA mistakes in episode number 392.

And then whether you should choose a traditional or Roth account

for your IRA or your retirement plan at work,

that was episode 393 last week. One of the points I covered in

previous shows is that you cannot contribute to a Roth IRA when you make too much

money. I received several questions about this so I

wanted to continue talking about retirement accounts this week. It's a really

interesting topic because there's actually a legal strategy that you can use to create a Roth IRA even when you

technically make too much money to qualify.

The strategy is called a backdoor Roth IRA. I'm going to explain what it is, take you through a

five-step process to create one, and help you understand whether a backdoor Roth IRA is smart for your situation.

And if you're thinking that this topic doesn't apply to you because your income

isn't high enough to lock you out of a Roth IRA yet?

Stick with me.

This is still important for you to understand because your income is likely to grow in the future.

As I've mentioned in previous shows,

a Roth IRA is a type of account that allows you to save for retirement

while getting some terrific tax benefits. you

...