Backdoor Roth IRA

A backdoor Roth IRA is not an official type of retirement account. Instead, it is an informal name for a complicated, IRS-sanctioned method for high-income taxpayers to fund a Roth, even if their income is higher than the maximum the IRS allows for regular Roth contributions. Brokerages that offer both traditional IRAs and Roth IRAs provide assistance with the strategy, which basically involves converting a traditional IRA into the Roth variety.