How Early Retirees Use a Backdoor Roth IRA

The Financial Freedom Podcast with Fexingo: Quitting Your Job, Living Off Investments, Independence · Jul 18, 2026 · 8m · transcript

Episode 121 of The Financial Freedom Podcast with Fexingo tackles the Backdoor Roth IRA — a strategy that lets high earners contribute to a Roth IRA even when income limits block them. Lucas and Luna walk through the exact steps, the pro-rata rule trap, and what happens if you have an existing traditional IRA balance. They use a concrete example: a couple earning $240,000 who each contribute $7,000 to a traditional IRA, then convert it to Roth. The episode also covers the 'mega backdoor Roth' for those with a 401(k) that allows after-tax contributions. If you earn too much for a…