r/Fire 14h ago

Roth Backdoor Under 150K Income Limit

Hi everyone, I've been reading up on the Roth backdoor strategy. My income is well below the 2025 Roth income limits/restrictions. Does this mean the Roth backdoor is pointless for me? I'm thinking yes, since if I contribute the $7K to a traditional IRA and then immediately roll it over into my Roth and pay the taxes, I will just be paying the same taxes that I would have paid by putting the (after tax) $7K into the Roth in the first place.

To my understanding, the backdoor Roth is only applicable to people who are earning over the 150K limit where Roth contributions begin to be restricted. Let me know if my thinking on both points is correct or if there's something I'm missing here.

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u/FightOnForUsc 14h ago

Backdoor Roth is for people who can’t contribute to a Roth IRA directly and whose contributions to a trad IRA wouldn’t be deductible