Suze Orman

Do you want to answer that?

Do you want that to be your pop quiz?

All right.

But let me explain it very clearly.

All right.

Once you make too much money.

You listen to me closely.

But that's what I said, everyone.

They know what you said.

She so hates being wrong.

Right.

So...

Obviously, there are maximum modified adjusted gross income limits that you have to be under to do what's called a contributory Roth.

And a contributory Roth is where you are able to put in up to $7,500 if you are under 50 this year, $8,600 if you are 50 or older, and you can do that every year.

However, you can also do what's called a conversion, which means if you have a traditional IRA right now, an IRA that obviously you've never paid taxes on, you can convert that money regardless of your income.

into a Roth IRA, you just have to do what?

You have to pay taxes on the amount that you converted.

But then a backdoor Roth is very, very different.

A backdoor Roth is where you do not have a traditional IRA already or a traditional SEP IRA or a simple IRA.

Because if you do, you cannot do