1 / 6

Use the Backdoor Roth IRA Strategy When You Are in a High Tax Bracket

Zenith Tax Pro is one of the CPA firm and provide expert Tax & Accounting LLC services in Florida. Contact us today 1 (772) 236-7536.<br>Our dedicated team offers Expert Tax Planning and Preparation, Meticulous Bookkeeping and Financial Reporting, Payroll Management, and Small Business Accounting support. Weu2019re here to assist with Financial Planning and Analysis, QuickBooks Consulting & Implementation. https://www.zenithtaxpro.com/

Zenith19
Download Presentation

Use the Backdoor Roth IRA Strategy When You Are in a High Tax Bracket

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Backdoor Roth IRA Strategy When You Are in a High Tax Bracket PAGE 01

  2. Understanding the Backdoor Roth IRA Strategy • Contributing to a Traditional IRA The IRS does not impose income limits on contributions to a Traditional IRA, though the tax deductibility of such contributions depends on income levels and participation in an employer-sponsored retirement plan. 2. Converting to a Roth IRA Once the contribution is made to the Traditional IRA, you convert the funds into a Roth IRA. PAGE 02 www.zenithtaxpro.com

  3. Step-by-Step Guide to Implementing a Backdoor Roth IRA 1.Open a Traditional IRA 2. Make a Nondeductible Contribution 3. Wait Period (Optional) 4.Convert to a Roth IRA 5. Report the Transaction on Taxes PAGE 03

  4. Advantages of a Backdoor Roth IRA TAX-FREE GROWTH & WITHDRAWALS Since Roth IRA contributions are made with after-tax dollars, all qualified withdrawals in retirement (after age 59½ and meeting the five-year rule) are entirely tax-free. NO REQUIRED MINIMUM DISTRIBUTIONS (RMDS) Unlike Traditional IRAs, Roth IRAs do not require mandatory withdrawals during retirement, allowing funds to grow tax-free for longer. PAGE 05

  5. The Backdoor Roth IRA is an excellent strategy for high-income earners looking to take advantage of tax-free growth. However, due to the complexities involved—especially the pro-rata rule—it’s best to work with a knowledgeable CPA or tax professional to ensure compliance and minimize potential tax liabilities. If you’re considering implementing this strategy, contact our team at Zenith Tax & Accounting for expert guidance! PAGE 6

  6. Thank You! askme@zenithtaxpro.com 1 (772) 340-6805 PAGE 7

More Related