Backdoor Roth
A workaround that lets high-income earners fund a Roth IRA via a non-deductible Traditional IRA conversion.
Why it matters
Contribute non-deductibly to a Traditional IRA, then convert to Roth. Watch out for the pro-rata rule: if you have other pre-tax IRA balances, part of every conversion is taxable proportionally. Backdoor Roths must be reported on Form 8606.
See also
Educational only — not financial, tax, or legal advice.