Broker Check

Backdoor Roth Strategy

| October 08, 2019

We can help with a “backdoor Roth” strategy that is definitely legal and probably advantageous to you, especially if you already have reached or plan to reach your annual contribution limits on your 401k and traditional IRA accounts.  For your high earning loved ones, friends and co-workers, please pass along this information and we can help them too!

Unless certain criteria are met, Roth IRA owners must be 59 ½ or older and have held the IRA for five years before tax-free withdrawals are permitted.  Additionally, each converted amount may be subject to its own five-year holding period.  Converting a traditional IRA into a Roth IRA has tax implications.  Keep in mind that there is no assurance that any strategy will ultimately achieve its desired results.  IFG and its advisors do not offer tax or legal advice.  You should discuss any tax or legal matters with the appropriate professional.