Back Door Roth IRA

[Mike T.]

I have recently noticed a few articles posted on mainstream sites such as marketwatch about back door Roth IRA. I am in a situation where I would like to put more that the maximum for my Roth. I am 33 years old and know that the money will be worth a lot more in tax free accounts in retirement.

I have w-2 income

1099 income (building side business for self directed roth 401k)

I currently own no IRAs only a roth account. My understanding is I can open an IRA for 25,000 and the roll that immeadiately into a roth. The downside will be I will not be able to pull initial investment out for five years and my IRA deposit will not lower my AGI (if I am over income limits).

Any additional input?