The Financial Survival Guide for Dentists: Everything you Needed to Know, but Were NEVER Taught, in Dental School by Shamardi DMD Sam S

Author:Shamardi DMD, Sam S. [Shamardi DMD, Sam S.]
Language: eng
Format: epub
Publisher: Dental Innovations LLC
Published: 2020-07-30T16:00:00+00:00

Convert your entire traditional IRA account to a Roth IRA account.

Make an after-tax contribution to a Solo 401(k) plan and then roll it over to a Roth IRA

NOTE:

Taxes will be due on any money in your traditional IRA that hasn’t already been taxed.

Taxes must be paid on any earnings between the time you contributed to the traditional IRA and when it was converted to a Roth IRA.

If you are under 59 ½, you have to wait five years to have penalty-free access to your funds unlike usual Roth IRA contributions, which you can withdraw at any time without taxes or penalties.

Unlike a Roth IRA, there are no income limits to be eligible to open an account.

Unlike a Roth IRA, there are no contribution limits.

The main advantage of a back-door IRA is that taxes are paid upfront on your contributions, and therefore, the money will be tax-free when you withdraw it sometime in the future. You may want to consider a back-door IRA if you think tax rates will rise in the future, or that your taxable income will be higher after you retire than it is now.

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