Some high-profile personal finance commentators are big fans of the “backdoor Roth IRA.” I’m not — at least not for high earners — and here’s why: If you’re making enough money to be considering a backdoor Roth, there are likely higher-impact, less administration-intensive ways to minimize your tax burden.
A backdoor Roth is a loophole that avoids income limits to be eligible to contribute to a tax-free Roth IRA retirement account. The loophole: Taxpayers making more than the $161,000 limit in 2024 can’t contribute to a Roth IRA, but they can convert other forms of IRA accounts into Roth IRA accounts.
