If you earn too much, you are unable to make a regular contribution to a Roth IRA. But there is a workaround called the Backdoor Roth Contribution. There are many complicated steps that must be considered and if done improperly can result in significant penalties for your client.
To help make this easier, we have created the “Can I Make a Backdoor Roth IRA Contribution” flowchart. It addresses common issues that occur when doing a Backdoor Roth IRA: Contribution:
- Earned income phase-out ranges for the current year
- Impacts of contributions done after age 70.5
- Pro-rata rules and the formula to determine the taxable amount
- Aggregation rules
- Step-doctrine complication
- Mechanics of making a Backdoor Roth Contribution
- Step-by-step process
CLICK THE FLOWCHART BELOW TO DOWNLOAD YOUR COPY:
Please let us know if you have any questions about your eligibility or retirement income planning. We are here to help!
This information is intended for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.
