The Back Door Roth IRA (Roth Individual Retirement Arrangement) is an excellent type of IRA for those who are looking to save for retirement. This type of retirement account offers many advantages and financial benefits.

First, a Back Door Roth IRA allows individuals to have a Roth IRA even if their income is too high to be eligible for a traditional Roth IRA. This is beneficial since it allows higher-earning individuals to take part in tax-free growth and withdrawn tax-free in retirement.

Second, because the contribution limits are low – up to $6,000 per year for those under 50, and up to $7,000 for those 50 and over – it’s an excellent way to save for retirement, especially if you’re on an entry-level salary. Additionally, Roth IRAs are not subject to required minimum distribution, so the funds will stay in the account until retirement, thus providing you with more control over how much you save.

Third, the Back Door Roth IRA allows an individual to convert funds in their traditional IRA into a Roth IRA. As long as taxes are paid on the traditional IRA funds converted, an individual can receive tax-deferred growth and withdrawals