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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]What is a backdoor Roth as opposed to a Roth? This is post-tax, and limit is $5,500/year?[/quote]

There are income limits to contributing to a Roth IRA.  If your income exceeds that limit, you can contribute to a regular IRA, then convert it to a Roth, perfectly legally.  It's a way of getting to a Roth through the "backdoor," since you can't just contribute up front.  [/quote]

So do you keep opening new IRA's every year?  [/quote]

This is google-able, but short answer: no, because the first time you convert you have to convert your entire IRA portfolio to Roth, including any rollovers you have from previous jobs.  You're taxed on any gains you've made (not contibutions), so most people roll any existing IRA's into their current 401k/TSP/what-have-you so that the tax basis will be lower, and only on the first 5500 you plan to convert.  Then you put 5500 in a traditional the next year and roll it into your existing Roth.  You end up with one traditional IRA account that's empty 355 days out of the year, and one Roth account that you convert new contributions into.[/quote]

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