<prompt> Human: I am looking to open up a Roth IRA and add the maximum contribution for 2014 and start contributing for 2015. In 2014, I started a new job after graduating and only made half of what my salary would be for 2015, so I am not over the income limit. However, in 2015 I will be over the income limit to contribute.Can someone explain to me how backdoor Roth IRA contributions work? It seems like a loophole and I keep reading about it as that way. Is there a downside to doing this? more taxes, etc. Why is there an income max on a Roth IRA if you can just simply do the backdoor contribution? Thanks for any clarificationAssistant: Make a non-deductible traditional IRA contribution. There is no income limit for this step. Convert the traditional IRA to a Roth IRA. If only non-deductible contributions are in the traditional IRA, then the amount is non-taxable. There is no income limit for this step.There was legislation that opened up this back door by eliminating income limits on the first step. It effectively eliminates the max income for Roth IRA. Obama proposed closing this method. Human: So it seems like this wont even be an option anymore starting in 2016?  <response>: That budget proposal has virtually no chance of succeeding. I would not worry about it. 