We discuss the intricacies of Backdoor Roth IRAs, a popular strategy for high earners to contribute to Roth IRAs despite income limits.

We explore the mechanics of the Backdoor Roth and the Mega Backdoor Roth, including eligibility, contribution limits, and tax implications.

We also cover the importance of understanding 401k options, the pro rata rule, and key considerations for executing a Backdoor Roth conversion effectively. 

We address work visa considerations when looking to complete a back-door role or a direct contribution.

We help you think through whether this is for you or not based on your work visa, your country of origin, and where you are likely to be when you finally withdraw the money.

We finally address the biggest mistakes we see when people DIY backdoor roth and the tax preparation that comes after that.

Episode Links & Resources

• Ep 20: What Is English For "Custodial Accounts?".

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

There is more than one type of individual retirement account (IRA). In this episode, we focus on the different types, including Traditional, Roth, SEP, SIMPLE IRAs, and spousal IRAs.

We explore each type's tax advantages, eligibility, and implications, especially for individuals with cross-border considerations.

The conversation also covers important aspects such as distributions, rollovers, conversions, and the significance of consulting financial and tax advisors for personalized advice.

A Few Takeaways 

• An IRA is a tax-advantaged investment tool for retirement savings.

• Traditional IRAs allow for tax-deductible contributions under certain conditions.

• Roth IRAs are funded with after-tax dollars, allowing for tax-free growth.

• Cross-border implications are crucial for those on work visas.

• Consulting both financial planners and tax advisors is essential for effective retirement planning.

• Withdrawals from traditional IRAs are taxed as ordinary income.

Tune in for the rest of the details.

Episode Links & Resources

• Ep 20: What Is English For "Custodial Accounts?".

• Ep 23: Applying For Social Security From Abroad.

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.