This strategy allows you to reduce taxes when working and then move money from a traditional IRA or 401(k) into a Roth IRA over time while paying little to no taxes. It is an advanced technique gaining popularity among early retirees and savvy investors.
1. You deposit post-tax money into a Roth IRA account. Contributions are not tax-deductible.2. A Roth IRA is a retirement account that provides tax-free growth because the money you contribute is taxed before you deposit it.