1099 CRNA Institute: Thrive as your own boss-Backdoor ROTH IRA

Video Transcription

Video Summary

In this video, the speaker discusses the backdoor Roth IRA as a strategy for high-income earners who are restricted from contributing to a traditional Roth IRA due to income limits. They explain the benefits of a Roth IRA, which allows tax-free withdrawals in retirement, unlike traditional IRAs. The backdoor Roth involves making non-deductible contributions to a traditional IRA, then converting it to a Roth IRA. However, there are important rules to follow, such as not having additional IRAs to avoid the pro rata rule. Overall, the backdoor Roth IRA strategy can help diversify retirement income and manage tax liability effectively.

Asset Subtitle

As a 1099 independent contractor Certified Registered Nurse Anesthetist (CRNA), you may be eligible to utilize the "Backdoor Roth IRA" strategy to contribute to a Roth IRA, even if your income exceeds the direct contribution limits for Roth IRAs.

Keywords

backdoor Roth IRA

high-income earners

income limits

tax-free withdrawals

pro rata rule