What Is a Back Door Roth Contribution?

Lemonleme: Most of the time, it is because of something called the prorate rule. If you do this back door process right, and it applies to youyou can get away with what i just discussed. The conversion to the roth will not be taxable because the money you put in to the traditional ra wasn't a got no text break for it. There's some earnings, there're some gains in there, that's all pre tax. So 95 grand of not yet taxed money inside your ir next youcn le to, say, five thousand dollars on a non deductable basis.