A Roth IRA is a tax-advantaged savings tool that enables people to save and invest after-tax dollars in a retirement account. They can be attractive because savers enjoy tax-free withdrawals during retirement. However, unlike traditional IRAs, Roth IRAs have income limits. All hope isn’t lost for high earners who want to use this retirement savings vehicle thanks to backdoor Roth IRAs. They make it possible for anyone at any income level to take advantage of. What is a Backdoor IRA? A backdoor Roth is a strategy investors use to grow tax-free savings in a Roth IRA when they exceed the income limits. The income limits refer to the maximum amount you can earn to contribute to a Roth IRA and that limit changes periodically. You can check the IRS website to find out what the limits are for the current year. How Does a Backdoor Roth Work? To carry out a backdoor Roth, you first need to put dollars into a traditional IRA. Once you’ve funded your traditional IRA, you can ask your plan administrator to provide instructions and paperwork for rolling funds into a