SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. High-income households can use what’s called a “backdoor Roth” to utilize a Roth IRA despite the program’s standard income restrictions. This can be an effective way to build a tax-free stream of income for your retirement, and it is a completely legal strategy. Whether this method will reduce your taxes depends heavily on your tax rates now versus what you’ll pay in retirement. For some high-earners, a ...