A little while ago on The Simple Dollar, Saundra Latham wrote a nice summary of how a backdoor Roth IRA works. Since then, I’ve seen a number of follow-up questions regarding backdoor Roth IRAs, so I thought I’d write a complementary article explaining some of the things that people were asking questions about.
Mostly, these questions centered around why a person would want to do this. Hopefully, between these two articles, any basic questions you have about a backdoor Roth IRA can be answered; if you have plan specific questions, you should talk to your investment firm or to your 401(k) plan administrator at work.
Let’s start off with explaining a few key terms, just so no one’s lost right off the bat.Big Boss vote
Mostly, these questions centered around why a person would want to do this. Hopefully, between these two articles, any basic questions you have about a backdoor Roth IRA can be answered; if you have plan specific questions, you should talk to your investment firm or to your 401(k) plan administrator at work.
Let’s start off with explaining a few key terms, just so no one’s lost right off the bat.Big Boss vote
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