You might have read about how anyone could sneak $5,500 a year into a Roth IRA - even if exceeding standard income limitations - through a technique known as the backdoor Roth IRA. But did you know there is an even trickier technique out there that allows some lucky people to contribute up to $36,000 a year into a Roth IRA? Given the larger size and to differentiate it from the typical backdoor Roth IRA, some have started calling this technique the "mega backdoor Roth IRA.”
The financial advisor ecosystem can be surprisingly complex. Nearly anyone can call themselves a financial advisor, financial planner, or financial coach, with minimum qualifications required. As a result, it's important to be careful and thoughtful when selecting a professional to help you save, grow, and protect your savings. Here are five things to consider when shopping for a financial advisor.
A Roth IRA is the ultimate retirement vehicle, as it allows you to contribute post-tax dollars to a retirement account. That means a Roth IRA grows tax-free and is withdrawn tax-free since you've paid taxes on the money upfront. That sounds like a good deal - unless you bump up against income barriers. If you make too much money, you might find yourself blocked from contributing to a Roth IRA - that is, unless you go through the backdoor.