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September 2015 Issue of PFwise.com's Monthly Newsletter
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PFwise.com Monthly Newsletter

Help you make wise personal finance decisions

Hello friends, welcome to the September 2015 PFwise.com Monthly Newsletter!  In this issue, we will discuss Backdoor Roth IRA Conversion - 3 simple steps and 2 potential complications.

Backdoor Roth IRA conversion is a tax-smart strategy for high income families.  In this newsletter, we will show you how to get it done in 3 simple steps.  Also, many people don't realize there are two potential complications associated with backdoor Roth IRA conversion, we will discuss them in great details as well.
 
Backdoor Roth IRA: 3 Simple Steps
If you don't know what is backdoor Roth IRA conversion and who might benefit from it, this blogpost should give you a clear idea.  If you really like this idea, then this blogpost will show you how to get it done in 3 simple steps. 

Complication 1. IRA Aggregation Rule
Unfortunately, for some people, backdoor Roth IRA conversion may not be that straightforward, thanks to the IRA Aggregation Rule.  For a detailed explanation, along with a numerical example, please read this blogpost

Complication 2. Step Transaction Doctrine
Step Transaction Doctrine is a legal principle that IRS could apply it to people who "abuse" the backdoor Roth IRA conversion.  If you are not a risk taker and don't want to mess around with IRS, you better know about it and read it here.

Thank you for your readership!  I hope this newsletter helps you think about backdoor Roth IRA conversion and do it safely.

If you like our newsletter, please share with your friends.  They can subscribe by dropping a line to help@pfwise.com or click here.

The Bottom Line
 
Personal Finance is a broad and complicated topic, and needs lot of knowledge and forward-looking planning.  I hope I can share my knowledge and use my skills to help you make wise PF decisions.

Kaisheng (Kenny) Bao, CFA, MBA
Independent Agent
National Producer Number 16505199
PFwise.com
(571) 482-9394


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