How does the backdoor Roth IRA work? How does the backdoor roth IRA work, I understand if you hit the income limits you can’t normally contribute to a Roth IRA and that you have to do the backdoor method. What is physically stopping me from just contributing to a regular roth IRA anyways? I know robinhood right now offers a Roth IRA, can’t I just contribute to that account even if…

Backdoor Roth Question Hi All, ​ We are going to need to use a backdoor Roth in the next year or two and I’m trying to learn a little more about the strategy. I understand the general idea. Add all the funds to a standard IRA and then convert that account into a Roth IRA at 1 time before the standard IRA makes any money from the market. My confusion is do I need to o…

Mega backdoor 401k for folks who want to FIRE I would like to FIRE and I saw that my employer offers the mega backdoor 401k so I could hypothetically contribute up to 66k per year into my 401k. But for folks who want to FIRE, since you only have access to the money at age 59.5 do you typically take advantage of this? I’m asking because my income is not so high that I could do that and then …

Roth IRA vs Mega Backdoor Roth Hi all, I currently have access to both a Roth IRA as well as a Mega Backdoor Roth from my employer. Is there an advantage to contributing to one over the other if given the choice? I think the only advantage is that for the Roth IRA you can choose your own investments, while for the Mega Backdoor, you’re restricted to only what your employer of…

Backdoor Roth IRA: Recharacterize vs Conversion When I was doing my taxes for 2022, I went over the Roth limits for the first time, so I had to do a form to recharacterize my contributions as a traditional IRA. So now for 2023, I understand that I should be contributing to the Traditional account and then… do I use the “Recharacterization form” or “Roth Conversion” from my bank? (Chase if …