WealthRabbit Support

Who typically uses a Backdoor Roth IRA?

A Backdoor Roth IRA strategy is most often used by individuals whose income exceeds the IRS limits for contributing directly to a Roth IRA. This group commonly includes medical professionals, executives, business owners, self-employed individuals, and high-earning dual-income households.

Many people consider a Backdoor Roth IRA because they want the long-term benefit of tax-free withdrawals in retirement. This strategy may also appeal to individuals who expect to be in a higher tax bracket later, want to minimize future taxable income, or prefer the flexibility that Roth IRAs offer.

However, a Backdoor Roth IRA is not right for everyone. Existing IRA balances, current tax exposure, and long-term goals should be carefully reviewed before deciding if this strategy is a good fit.