Is there a loop hole to having a Roth IRA even if you are over the income limit? How did Peter theil get one? Looking for advice

likeuplifting
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You can convert a traditional IRA to a ROTH and pay the one time tax on the FMV of the IRA. There’s also the back door ROTH which is contributing to a traditional IRA each year, receive no deduction (since over the income limit), and immediately convert to ROTH. FMV on date of conversion equals your basis (since no deduction) so no tax impact.

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He stuffed $2K worth of pre ipo PayPal shares at a wildly undervalued price of something like 1cent a share. For the rest of us you can just use the backdoor conversion to contribute to a Roth, no matter your income.

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Just to add to the craziness, it was actually $0.001 per share

likehelpful

Backdoor roth.

But in thiels case, he opened that roth in 1999, before his reported income made him ineligible, so he didnt need to backdoor.

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Anyone can contribute to a Traditional IRA and roll it over into a Roth.

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