Backdoor Roth IRA | Think You Have it Figured Out?

A backdoor Roth IRA can be a powerful strategy for high-income earners, but if done incorrectly can create an unexcepted tax bill. In this video, Bryan Yach, CFP® walks through two investors who make the exact same $7,000 backdoor Roth contribution but get very different tax results. The difference comes down to the IRS pro-rata rule. If you’re considering a backdoor Roth IRA, you’ll want to understand this first. 📌TIMESTAMPS: 00:00 - The Tale of Two Roths: Jessica vs. Carl 00:22 - How Jessica's Backdoor Roth Worked Seamlessly 00:58 - Carl's Hidden Trap: The Rollover IRA 01:31 - Why the IRS Treats All IRAs as One Bucket 02:14 - Understanding the Pro-Rata Rule 02:45 - How to Fix or Avoid the Pro-Rata Mistake 03:15 - Final Thoughts on Avoiding Costly Tax Mistakes ------------------------------------------------------------------ 💡 Found this video helpful? SUBSCRIBE to the channel for more practical insights on retirement, wealth management, and financial planning. ------------------------------------------------------------------ 📌 About Bryan Yach & Yach Advisors: Bryan Yach is a Certified Financial Planner™ professional with over 15 years of experience helping individuals, business owners, and families simplify financial complexity, optimize taxes, and navigate retirement with confidence. 🌐 Learn more: https://www.yachadvisors.com 🗓️ Have a Question or want to Schedule an Introductory Call? You can contact us at https://www.yachadvisors.com/contact ------------------------------------------------------------------ Disclaimer: This video is for educational purposes only and should not be considered personalized financial, legal, or tax advice.