Today your host Josh and co-host Michelle discuss a concept that gets pushed pretty hard by my industry: the Roth conversion, often somewhat incorrectly referred to as a "back-door" Roth, it's kissing cousin.
Takeaways
- Because the taxes have already been paid on a Roth IRA contribution, the account value grows tax free, and there are no additional income tax due when you start withdrawing
- A back-door Roth conversion differs from a regular Roth conversion in that the funds being moved are after-tax IRA funds to an after-tax Roth IRA account
- The IRS has income limits for Roth IRA contributions. For 2023, the Modified AGI (MAGI) income limits is $153,000 for single filers and $228,000 for married couples filing jointly
