Suze Orman

do a backdoor Roth, because if you do a backdoor Roth, you are going to be subjected to what's known as the pro rata rule, which means you're going to have to pay taxes on that money essentially twice.

So you just don't do it.

If you do not have a traditional retirement account outside of work of any kind, what you do is you open up

a IRA, but you make it non-deductible and you fund it with either the 7,500 this year or the 8,600 if you are 50 or older, and you then immediately convert it to a Roth IRA.

So now you have gotten money into the Roth IRA through the back door as if it's like a contributory Roth.

But you cannot contribute more than $7,500 or $8,600 right now to a traditional IRA that you make non-deductible.

So do you understand the difference, KT?

It's not just converting money you have in a traditional.

All right.

But that's going through the back door.

The key is, however, you have to make sure that you do convert it.

And the reason is you want it in the Roth IRA because if it stays in the non-deductible IRA and it starts to grow, if it makes money and then you convert it, the amount of money that it's

groan will be taxed to you.

So there you go.

But you have to be careful with it.

Yeah.

You thought you were so smart, didn't you?

We talked about this.

I just want to say this to you.

I'm proud that you tried.