What Is a Backdoor Roth IRA?

A backdoor Roth IRA is a strategy rather than an official type of individual retirement account. It is a technique used by high-income earners—who exceed Roth IRA income limits—to convert their traditional IRA to a Roth IRA.

A backdoor Roth IRA is a completely legitimate way to get past the income limits that the IRS sets. This method involves converting a traditional IRA into a Roth IRA, and allows you to still deposit your $6,000 once a year for 2022, and $6,500 a year in 2023.