High earners are told they cannot use a Roth IRA.
The wealthy ignore that rule.
They use a backdoor Roth.
Put money into a traditional IRA with no deduction.
Convert it into a Roth.
Now it grows tax free forever.
It is legal. Congress approved it in 2010. And it is still open.
But here is what most people miss.
Backdoor Roths are crumbs.
The real play is converting big 401k balances into Roth.
If you are going to pay taxes anyway, better to pay once now than bleed every year later.
That is how the rich stay ahead.
