# @thejoserafaelhernandez on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DFiXTLigWoc
- **Gondola URL:** https://gondola.cc/posts/59826763-thejoserafaelhernandez-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/15ea06a2db.jpg
- **Posted:** 2025-02-01T16:34:59.000+00:00
- **Account Owner:** Jose Hernandez (@thejoserafaelhernandez) — https://gondola.cc/thejoserafaelhernandez

## Caption

My wife will be the first to tell you that I (at times) have the emotional intelligence of a traffic cone. But I’m working on it lol
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Anyway, yes, Roth IRAs are solid investment accounts for building tax free wealth for the future 
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But after your income (or modified adjusted gross income, to be more specific) goes over a certain threshold, you’re “phased out” (blocked) from being able to contribute (add) any new money to your Roth IRA, the “regular way”, at least 
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The “Backdoor Roth conversion” is a workaround that you can use a higher income earner to get around the income limits and still fund your Roth IRA to continue to build tax free wealth for the future 
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It involves you maxing out a Traditional IRA with after tax $ (AKA: making a nondeductible IRA contribution) and then moving that $ over to a Roth IRA using what’s called a Roth conversion 
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Like Rick Sanchez would say, it’s “Roth IRA with extra steps”
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You want to be careful when you go down this route, especially with something called the “pro-rata rule”
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This is why being armed with the right knowledge & strategy is crucial to your success as an investor, especially as your income and wealth continue to grow 
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If you have any questions on any of this, drop them in the comments and I’ll do my best to answer them when I have the capacity 👇🏼
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#rothira #investing #compoundinterest

## Stats

- **Views:** 4,253
- **Likes:** 78
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## Tags

compoundinterest, investing, rothira

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