Individual Retirement Accounts - Backdoor Roth IRA

This handout reviews the rules which allow higher income individuals to bypass income limitations and effectively make a Roth IRA contribution.

HIGHLIGHTS: 

1. Roth IRA limits.

2. Nondeductible IRA contribution.

3. Conversions.

4. Recharacterization.

5. Periodic distributions.

6. Requirement minimum distribution.

CLIENTS WHO MAY BENEFIT:

1. Taxpayers who want to contribute to a Roth IRA and are over the income threshold.