If Roth IRAs offer a legitimate long-term savings strategy by allowing people to generate tax-free income, why do less than a third of IRA investors have such an account? The short answer is income limits; taxpayers above certain levels can't invest directly into a Roth IRA.
But, as Keith Clark writes in Kiplinger, they can contribute in a different way.
It's called a "backdoor" Roth IRA and is absolutely worth learning about for those who don't have traditional IRA assets and want to leverage tax-free income during retirement.
Clark describes what a backdoor Roth IRA is, how it works, and some important rules and tax considerations in the full Kiplinger article.
Find it here!
