The Back Door Roth IRA (How High Earners Can Get Money Into a Roth IRA!)

The Personal Finance Podcast

Andrew Giancola

Business, Investing, Entrepreneurship

4.7 • 1.4K Ratings

🗓️ 4 August 2021

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

65. The Back Door Roth IRA (How High Earners Can Get Money Into a Roth IRA!) We launched a Youtube Channel! Check it out here. Master Money on YouTube. Got questions? Ask me on Instagram Here. @mastermoneyco This is the fastest way to get a response from me. You can also ask questions on TikTok @mastermoneyco to get a response from me. Sponsors Thank you to Fundrise for Sponsoring this Episode! Check them out a fundrise.com/personalfinance Thanks to Ladder for sponsoring this episode! Go to Ladderlife.com/pfp to learn more! Thanks to our sponsor Manscaped (Manscaped.com) for sponsoring this episode of the podcast. Use code PFP20 at checkout for 20% off + Free Shipping! Thanks to Mini Cooper for sponsoring this episdoe! Check them out at miniusa.com Want to Support the Show? Follow on Spotify or Follow and Leave a 5-Star Review on Apple Podcasts! Today We Discuss: What is a backdoor Roth IRA? How to get money in a Roth ira if you make too much. How the IRS sees the backdoor Roth IRA. How to convert your IRA with Vanguard, Fidelity, and more! \More Episodes You Will Love: The Super Retirement Account (HSA) How much you need to save to retire Why Understanding Your Savings Rate Will Change Your Life (and Allow You To Retire Early) The Roth IRA Millionaire The 401(k) Millionaire Pro-Rata Rule video: https://www.youtube.com/watch?v=16Wfqzmd9tU How to do a Back Door Roth IRA in Fidelity: https://www.youtube.com/watch?v=lNjZRPkNY5U How to do a Back Door Roth IRA in Vanguard: https://www.youtube.com/watch?v=dBXQNqpnmSY Check out all the Stuff I Recommend! M1 Finance Open a Roth IRA Personal Capital Free Wealth Management + Budget App and Fee analyzer! CIT BANK (Best Savings Account) Best Personal Finance Books The Simple Path to Wealth - J L Collins The Millionaire Next Door - Thomas Stanley I Will Teach You To Be Rich - Ramit Sethi Rich Dad Poor Dad - Robert Kiyosaki ** Some links may be affiliate links and we earn a small commission at no extra cost to you. We only recommend products we truly believe in. Check us out on social fam! Twitter Dollar After Dollar Instagram www.thepersonalfinancepodcast.com www.dollarafterdollar.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	On this episode of the Personal Finance Podcast, we're going to talk about the Back Door Roth IRA. Oh, I'm not. What's up everybody?
0:25.0	up everybody and welcome to the personal finance
0:29.3	podcast. I'm your host Andrew founder of Dollar After Dollar.
0:33.4	And today on the personal finance podcast,
0:37.7	we're going to talk about the Back Door Roth IRA.
0:41.6	If you have any questions about this episode hit me up on Instagram at
0:45.2	dollar a f-t-t-r dollar and follow us on Spotify, Apple Podcast or whatever
0:50.9	podcast player you love listening to this podcast to and if you want to help out the show
0:55.6	Head on over to Apple podcast and leave a five-star rating and review just head on over there and give the old five star button a nice one to tapiroo
1:05.4	So today on the podcast we're gonna be talking about how to do a backdoor Roth IRA and if you've never heard of the backdoor Roth IRA. And if you've never heard of the back door Roth IRA before,
1:14.6	this is a way for high earners who don't meet the income limits of a Roth IRA
1:20.3	to be able to actually contribute to a Roth IRA.
1:24.0	And you know here at the Personal Finance Podcast,
1:27.0	we love our Roth IRA's.
1:29.0	We love to stick money in our Roth IRA's,
1:32.0	and here's why. Because when you put your money into a Roth IRA,
1:35.6	taxed money goes in, then the money grows tax-free and then the money can be pulled out tax-free.
1:43.1	But here's an amazing fact about a Roth IRA.
1:45.7	If you contribute $500 a month into a Roth IRA for 35 years
1:50.5	and you get an 8% rate of return.
1:53.0	That means your Roth IRA would have about $1,086,69.
1:58.6	Now since you're only contributing $500 a month, that means if you contributed for 35 years, the total amount that you would have contributed or your principal would be $210,000.
	...

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