The main advantage of a backdoor Roth IRA—as with Roths in general—is that you pay taxes upfront on your contributions, and everything after that is tax-free. This characteristic is most beneficial if you think tax rates are going to rise in the future, or that your taxable income will be higher after you retire than it is now.
Roth IRA contribution limits: For 2020 and 2021, you can contribute $6,000 each year ($7,000, if you are age 50 or over) to a Roth IRA.3? With a backdoor Roth IRA conversion, these limits don’t apply.
What is traditional Roth? With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age
No, there is no maximum traditional IRA income limit. Anyone can contribute to a traditional IRA. While a Roth IRA has a strict income limit and those with earnings above it cannot contribute at all, no such rule applies to a traditional IRA.
This doesn't mean your income doesn't matter at all, though. While you can make non-deductible contributions to a traditional IRA no matter how much money you earn, you are subject to an income limit for deductible contributions if either you or your spouse has access to a workplace retirement plan. These limits vary depending on which of you has a retirement plan at work.
Traditional IRAs allow you to invest pre-tax income toward your retirement. These contributions can grow tax deferred until you withdraw them, and they can be tax deductible, too. While anyone can contribute to this type of IRA (regardless of income), there are some restrictions.
You can deduct up to $6,000 in 2020 and in 2021 or $7,000 if you’re 50 or over (this is an aggregate limit for traditional and Roth IRAs). Contributions are also fully tax deductible if neither you nor your spouse has a workplace retirement plan. But tax deduction eligibility begins to phase out for higher earners.
In 2020, it begins to phase out at:
$65,000 in household income for a single filer $104,000 in combined income for a married joint filer with a workplace plan $196,000 for a married joint filer whose spouse has a workplace plan.
In 2021, eligibility to deduct contributions begins to phase out at:
$66,000 for single filers $105,000 for a married joint filer with a workplace plan $198,000 for a married joint filer whose spouse has a workplace plan
The key difference between Roth and traditional IRAs lies in the timing of their tax advantages: With traditional IRAs, you deduct contributions now and pay taxes on withdrawals later; with Roth IRAs, you pay taxes on contributions now and get tax-free withdrawals later.
The easy answer is that earnings from a Roth IRA do not count towards income. If you keep the earnings within the account, they definitely are not taxable. And if you withdraw them? Generally, they still do not count as income—unless the withdrawal is considered a non-qualified distribution.
大家去开一个吧，这个是高收入的，主要的功能是以后增长的钱，不要交税
打电话确认了，一人六千 per year，增加的不收税如果59.5岁后，开户五年。我去给我和老婆各开一个，total 4个帐户，四月前，可以加去年 具体的做法是开个传统的IRA先, 存进去，然后上马转成Roth，再买股票https://www.investopedia.com/terms/b/backdoor-roth-ira.asp
The main advantage of a backdoor Roth IRA—as with Roths in general—is that you pay taxes upfront on your contributions, and everything after that is tax-free. This characteristic is most beneficial if you think tax rates are going to rise in the future, or that your taxable income will be higher after you retire than it is now.
Roth IRA contribution limits: For 2020 and 2021, you can contribute $6,000 each year ($7,000, if you are age 50 or over) to a Roth IRA.3? With a backdoor Roth IRA conversion, these limits don’t apply.
那肯定pre tax traditional IRA 更加不可能了啊。越研究越晕菜了
What is traditional Roth? With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age
你新开的传统IRA，是non deductible IRA吧？
https://www.fool.com/retirement/plans/ira/income-limits/
Is there a traditional IRA income limit?No, there is no maximum traditional IRA income limit. Anyone can contribute to a traditional IRA. While a Roth IRA has a strict income limit and those with earnings above it cannot contribute at all, no such rule applies to a traditional IRA.
This doesn't mean your income doesn't matter at all, though. While you can make non-deductible contributions to a traditional IRA no matter how much money you earn, you are subject to an income limit for deductible contributions if either you or your spouse has access to a workplace retirement plan. These limits vary depending on which of you has a retirement plan at work.
MAGI在$75,000 single, $125,000 joint完全phase out
Traditional IRAs
Traditional IRAs allow you to invest pre-tax income toward your retirement. These contributions can grow tax deferred until you withdraw them, and they can be tax deductible, too. While anyone can contribute to this type of IRA (regardless of income), there are some restrictions.
You can deduct up to $6,000 in 2020 and in 2021 or $7,000 if you’re 50 or over (this is an aggregate limit for traditional and Roth IRAs). Contributions are also fully tax deductible if neither you nor your spouse has a workplace retirement plan. But tax deduction eligibility begins to phase out for higher earners.
In 2020, it begins to phase out at:
$65,000 in household income for a single filer $104,000 in combined income for a married joint filer with a workplace plan $196,000 for a married joint filer whose spouse has a workplace plan.In 2021, eligibility to deduct contributions begins to phase out at:
$66,000 for single filers $105,000 for a married joint filer with a workplace plan $198,000 for a married joint filer whose spouse has a workplace plan真正说的back door是：税后存入IRA。然后转Roth IRA。只有gain要交税。所以涨之前就最好转出来。
这是假设原来没有before tax in IRA。
这点挺重要。
The key difference between Roth and traditional IRAs lies in the timing of their tax advantages: With traditional IRAs, you deduct contributions now and pay taxes on withdrawals later; with Roth IRAs, you pay taxes on contributions now and get tax-free withdrawals later.
The easy answer is that earnings from a Roth IRA do not count towards income. If you keep the earnings within the account, they definitely are not taxable. And if you withdraw them? Generally, they still do not count as income—unless the withdrawal is considered a non-qualified distribution.
https://www.fidelity.com/viewpoints/retirement/spender-or-saver