#11 - Pro-Rata Rule: What is the Pro-Rata Rule? How to make backdoor Roth contributions when you already have Traditional IRA funds. | Listener Question

The Fiscal Physical Podcast

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Are you navigating the murky waters of Roth IRA contributions with an income that just won't play nice with IRS limits? Have no fear; Ryan Nelson from Alchemy Wealth Management joins Host Aaron Hoisington, to cast a lifeline of clarity. In our enlightening conversation, we dive into the 2024 income limits for those who are single and those who have tied the knot, offering a beacon of guidance for phased eligibility and contributions. Plus, we open the lid on the backdoor Roth IRA, a savvy option for high earners to bypass these income restraints and continue contributing to their financial future.
When listener Adam shared his dilemma of hitting the income ceiling for Roth contributions, it set the stage for a masterclass in IRA strategies, tailored for the financially astute. You'll witness Adam's journey as he weighs the decision to pause Roth contributions and explores a Roth conversion to facilitate future contributions, all while keeping an eye on the tax implications. This episode is more than just informative—it's a practical guide filled with relatable analogies and insightful discussions designed to help you invest with confidence. Bear in mind, though, while we're here to educate and hopefully entertain, we always recommend consulting with a professional to navigate your unique financial landscape.

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And, as always, STAY THE COURSE!