So I am projected to make over the income limit to contribute to a Roth IRA for 2021, (as long as I don't get fired randomly or something.) This is the first time I have been ineligible to contribute to a Roth IRA the normal way, so I am brand new to the Backdoor Roth concept.
Some questions:
- What is the catch here? The name makes it sound so sketchy haha
- Should I go ahead and contribute to a normal IRA and then convert it to a Roth IRA now? Or should I wait until later in the year? What do those of you who have done this before normally do?
- Can I just create a normal IRA on Vanguard and then roll the money over into my existing Vanguard Roth IRA?
- Is the contribution limit still $6000?
Submitted March 21, 2021 at 04:56AM by rand0mus3rnameturtle https://ift.tt/3lC1pMH
