What is the backdoor Roth IRA?

The backdoor Roth IRA is a strategy for high earners who exceed the Roth IRA income limits. It involves making a non-deductible contribution to a Traditional IRA (no income limit) and then converting it to a Roth IRA. The conversion triggers taxes only on any earnings in the Traditional IRA before conversion. Done correctly each year, it allows anyone to benefit from Roth's tax-free growth.