The Backdoor ROTH is an advanced planning strategy for high earners and big savers. Should you use a Backdoor ROTH?
Two reasons why you'd use a Backdoor ROTH strategy is:
1. You are phased out of making ROTH Contributions due to your high income.
2. You are a big saver and have already maxed out your 401(k) contributions
The process to implement a Backdoor ROTH will depend on if you are doing the smaller Backoor ROTH or the MEGA Backoor ROTH.
I also cover the biggest mistake I see when people attempt a Backoor ROTH without assistance. The pain in the butt "pro-rata rule".
This is not a ROTH vs. Traditional debate. You can max out all traditional contributions if that is your tax strategy and then take advantage of the Backdoor ROTH strategies!