What is a Backdoor Roth IRA?

In this episode of the Doctor’s Eyes Only Podcast, brought to you by Vestia Personal Wealth Advisors, Partner and CEO Lauren Oschman talks about the benefits, drawbacks, and qualifications for a Backdoor Roth IRA.

Lauren Oschman - I always go back to a story, so I actually work with a father and a daughter. The father is a retired physician, his daughter is currently a practicing physician who's working on accumulating her wealth and saving for her own retirement. So I started working with her father when he was on the precipice of retirement. He came to me, referred by his daughter, who had been a client of mine for a long time, and he said, Lauren, I've always done my investments myself and I would just love for you to be able to tell me, can I retire?

I started going through all of his accounts, and he had done a really really great job saving. He had been in a private practice, he had a lot of money put away in pre -taxed vehicles, so money that had never been taxed. And then anything he couldn't get into a pre -tax vehicle that wasn't a part of his spending plan, he was putting into a brokerage account. He never funded anything in the Roth bucket, right?