The Backdoor Roth IRA is one of the smartest ways for high earners to build tax-free retirement wealth. If you make too much to contribute directly to a Roth, there’s a simple workaround—and it could save you thousands in future taxes.
It’s a retirement account where you contribute money that’s already been taxed, and in return:
✅ Your investments grow tax-free
✅ Your withdrawals in retirement are tax-free
✅ No required minimum distributions
Let me say that again: Tax-free in. Tax-free out.
No surprise tax bills at 60+. No forced withdrawals at 73.
If you believe taxes are going up in the future, the Roth IRA becomes even more powerful.
If you’re filing jointly and making over $246,000 (or $165,000 single), the IRS locks you out of direct Roth contributions.
But that doesn’t mean you’re out of options. (This, my friends, is where strategy comes in.)
Here’s how it works:
That’s it.
Now your money grows and compounds tax-free—and you get the full benefit of a Roth without breaking the income limit rule.
If you have any pre-tax IRA money (like a SEP IRA, SIMPLE IRA, or traditional IRA), the IRS adds them all up when you convert.
This is called the pro-rata rule, and it can make part of your conversion taxable—even if you used after-tax dollars.
Translation:
What looks like a clean, tax-free move… could come back with a surprise tax bill.
We can often fix this by rolling your other IRAs into a Solo 401(k)—which the IRS doesn’t count in the pro-rata calculation.
This is where tax strategy becomes real wealth-building.
The backdoor Roth is one of the most powerful moves business owners can make to build tax-free wealth—but only if you do it right.
If you want to use this strategy and avoid IRS traps, let’s talk.
We’ll walk through your situation and map out the smartest path forward.
To your success,