HYS Tax & Accounting Firm

Looking for a corporate bankruptcy attorney who can work in office (Brooklyn). Salary 150k-200k

High-income taxpayers are limited in the annual amount they can contribute to a Roth IRA. However, they can circumvent the income limitations by first making a traditional IRA contribution and then converting it to a Roth IRA, which is commonly referred to as a "back-door Roth IRA." However, serious pitfalls associated with this maneuver can result in unexpected taxable income.

Back-Door Roth IRAs Many individuals who are saving for retirement favor Roth IRAs over traditional IRAs because the former allows for both accumulation of account earnings and post-retirement distributions to be tax-free. In comparison, contributions to traditional IRAs may be deductible, earnings are tax-deferred, an...