high-income individuals who are not eligible to contribute to a Roth IRA can now directly do what’s become known as a back-door Roth. Here’s how it works. If the investor doesn’t have an existing TIRA because they weren’t eligible to contribute to one due to the income limitations, they would first contribute to a nondeductible IRA and then immediately convert that to a Roth IRA, effectively working around the income limits on a direct Roth IRA contribution. Now you understand why it’s called a “back-door Roth.”
