Welcome to the Stay Wealthy podcast with Taylor Schulte.

I'm your host Jeremy Schneider filling in for Taylor for the month of August.

Today I'm sharing with you all about the elusive backdoor Roth IRA.

Specifically, I'm sharing what is a backdoor Roth IRA, why you may or may not want

to use one, and the steps to take to actually execute a backdoor Roth IRA. If you've been

wondering about backdoor Roth IRAs and how to use them, today's episode is for you.

For all the links and resources mentioned in today's episode, head over to

You Stay Wealthy.com slash 195. This is the fourth summer in a row I'm filling in for Taylor

for a month, and today is my second of four episodes I'm covering during the month of August.

So if you're annoyed that your favorite financial host Taylor isn't here, which is totally understandable, you only got me for two more weeks.

But in the meantime, let's talk about the backdoor Roth IRA. Since you're a listener of the

Stay Wealthy podcast, I imagine you already know that a Roth IRA is an investment account

that can be used to grow after

tax money tax free. But it comes with some strings attached. One of those strings is restricting

who can contribute money based on income. If you make too much money, you're not allowed to

contribute new cash to a Roth IRA. In 2023, if you make over $138,000 as a single tax filer,

or over $218,000 as a married couple filing jointly, you can't make the max raw

diary contribution. Technically, there's a phase-out period of income where you can make a

smaller contribution, but that has always seemed like a logistical mess to try to get the exact right contribution based on an income you won't even

know until the tax year is over. So if you're near or over this income limit, it may make

sense to do a backdoor Roth IRA. What is a backdoor Roth IRA? It's a strategy to subvert the

Roth IRA income limit so that you can

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