Can I Make A Backdoor Roth IRA Contribution in 2025?

If you are a Tech Pro who makes too much income, you are unable to make a regular contribution to a Roth IRA. But, there is a workaround called the Backdoor Roth Contribution. There are many factors and rules that must be considered, and complicated steps to take in order to properly implement this strategy, without penalty.

To help make the analysis easier, we have created the “Can I Make A Backdoor Roth IRA Contribution?” flowchart. It addresses key considerations, including:

• Multiple retirement accounts
• Pro-rata and aggregation rules
• Step transaction doctrine
• Step-by-step process for making a Backdoor Roth Contribution

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Backdoor Roth Flowchart

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The foregoing content reflects the opinions of TwoTenPlanning and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as financial, legal, tax, or investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee or assurance that diversification, strategies based on Nobel prize-winning research, or any investment plan or strategy will be successful. Past performance may not be indicative of future results. Discuss your specific tax issues with a qualified tax professional. Converting from a Traditional IRA to a Roth IRA is a taxable event. Article language adopted from fpPathfinder.

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