I've been trying to understand the Backdoor Roth IRA strategy and would appreciate any insights or personal experiences. As I understand, this method involves contributing to a traditional IRA and then converting that to a Roth IRA, which is particularly useful for those whose income exceeds the direct Roth IRA contributoin limits. However, I'm unsure about the tax implications and any potential pitfalls, such as the pro-rata rule. Could someone provide a detailed explanation on how to effectively execute a Backdoor Roth IRA conversion? Additionally, if anyone has gone through this process themselves, could you share how it impacted your tax situation and any tips you might have for minimizing complications?
