odanny
Diamond Member
- May 7, 2017
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High earners, however, are prohibited from contributing directly to a Roth IRA if their modified adjusted gross income in 2022 is at least $144,000 ($214,000 if married).
But they can still create a Roth IRA through a so-called "backdoor" strategy that involves converting their other IRA savings.
That's from your article. Roth IRA aren't available to people who make over $144,000 a year.
What's the problem? Roth IRA is meant for the poor.
Founder of PayPal is notorious for evading taxes this way:
Roth IRA
In 2021 it was revealed by ProPublica that Thiel had purchased 1.7 million founders shares in the entity that would become PayPal using a $1,700 Roth IRA in 1997. Due to the rapid growth in the value of the shares as PayPal grew and was later acquired by Ebay it allowed Thiel to turn his $1700 Roth IRA into an account worth more than $5 billion as of 2019. Most of this increase in the value of the Roth was due to him re-investing his Paypal winnings into companies like Palantir and Facebook which grew quickly after his investment. If Thiel waits till 2027 he can withdraw the entire $5 billion+ amount tax free.![en.wikipedia.org](https://upload.wikimedia.org/wikipedia/commons/thumb/3/3e/Peter_Thiel_by_Gage_Skidmore.jpg/1200px-Peter_Thiel_by_Gage_Skidmore.jpg)