A “back door” Roth IRA can benefit higher-income taxpayers

A “back door” Roth IRA can benefit higher-income taxpayersA potential downside of tax-deferred saving through a traditional retirement plan is that you’ll have to pay taxes when you make withdrawals at retirement. Roth plans, on the other hand, allow tax-free distributions; the tradeoff is that contributions to these plans don’t reduce your current-year taxable income.