A Backdoor Roth IRA is a way for high-income earners to contribute to a Roth IRA, even if their income is too high to qualify for regular Roth contributions. It involves putting money into a traditional IRA first—usually with after-tax dollars—and then converting that money into a Roth IRA. Since Roth IRAs grow tax-free and allow for tax-free withdrawals in retirement, this strategy helps people take advantage of those benefits even if they’re over the income limits. The process can be simple, but it’s important to understand potential tax implications and follow the steps carefully to avoid unexpected taxes or penalties.