Backdoor Roth IRA

A strategy that allows high earners who exceed Roth IRA income limits to get money into a Roth IRA by first making a non-deductible contribution to a Traditional IRA and then converting it to a Roth IRA. The conversion is generally taxable, but if you have no other pre-tax IRA balances, only the earnings (if any) would be taxed. This strategy requires careful attention to the IRA aggregation rule.