Episode 32 - Backdoor Roth IRA

In episode 32 of Building Wealthy Habits, we discuss Roth IRAs and specifically, backdoor and mega backdoor Roth IRAs. We explore the difference between traditional and Roth IRAs, highlighting the tax benefits of each. We also discuss the income limits for contributing to a Roth IRA and how the backdoor Roth IRA strategy allows high-income earners to contribute to a Roth IRA, touching on the benefits of Roth IRAs for legacy planning and college savings. The conversation concludes with a mention of Peter Thiel's $5 billion Roth IRA and the importance of tax planning.