Accounts & TaxFIRE glossary
Defined termBackdoor Roth
Contributing to a Traditional IRA then immediately converting to Roth. Used by high earners above the direct Roth IRA income limit.
Did this definition help?
Related terms
More from Accounts & Tax
529 Plan
A tax-advantaged account for education expenses. Contributions grow tax-free; qualified withdrawals are tax-free. Unused funds can now be rolled to a Roth IRA (up to $35K lifetime).
401(k)
Employer-sponsored retirement account. Contributions are pre-tax (traditional) or post-tax (Roth). Look for employer match — that's free money.
Roth Conversion Ladder
A tactic to access retirement money before 59½. Convert Traditional → Roth each year after retiring; after a 5-year wait, the converted amount can be withdrawn penalty-free.
Traditional IRA
IRA where contributions are tax-deductible today, but withdrawals in retirement are taxed as income.
Need another definition?
Jump back to the glossary index to search every FIRE term, filter by category, or keep browsing alphabetically.