If you make over $161k single or $240k married, they said Roth IRAs are off limits.
Here is what they do not tell you: there is a backdoor, and it is completely legal.
The Setup (takes 20 minutes)
Open a Traditional IRA at any brokerage. Fidelity, Schwab, Vanguard.
Contribute $7,000 (2026 limit) as a non-deductible contribution.
Wait 1-3 business days for the contribution to settle. Leave it in cash.
Convert to Roth IRA online or by phone. Since you contributed after-tax dollars with minimal gains, the tax hit is essentially zero.
File Form 8606 with your taxes. Your CPA should know this, but many skip it because it does not generate fees.
Why This Matters
$7,000/year does not sound life-changing. But compound it:
20 years at 8% growth = ~$350,000
30 years = ~$850,000
All of it tax-free in retirement. No RMDs. No capital gains. Nothing.
Your neighbor with the same income pays taxes on every dollar withdrawn from their Traditional IRA. The difference over a 30-year retirement? Potentially $200,000+ in avoided taxes.
Why Your Advisor Will Not Mention This
A $7,000 IRA contribution generates almost no fees for an AUM-based advisor. It is not in their managed account. They do not bill on it. So it falls off the priority list.
Your wealth is not their priority. It is yours.
Action step: If you have not done your 2025 backdoor Roth yet, you have until April 15, 2026. Open the account this week. 20 minutes now. $850,000 later.
Know someone making $200k+ who does not know about this? Forward this email. The system will not tell them. You can.
- CFOAnon