• What is the Mega Backdoor Roth and How to Do It Right

  • May 14 2024
  • Length: 20 mins
  • Podcast
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What is the Mega Backdoor Roth and How to Do It Right

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  • Summary

  • The Mega Backdoor Roth is a tax loophole that many affluent individuals take advantage of to put $69,000 into a Roth. If you are familiar with Roth IRAs, you know they are limited to only $7,000 a year in contributions ($8,000 if you’re over 50 years old) and they have income phase-outs. With the Mega Backdoor Roth, you can blow past this amount with no income limitations. The good news is that, while they are still allowed, anyone can implement this strategy with the right employer-sponsored retirement plan like a 401k. Let’s see how they work.


    Key Topics:

    • Basics of the Mega Backdoor Roth (02:56)
    • Three Contribution Types (04:34)
    • Real-Life Example of the Mega Backdoor Roth (08:03)
    • Do Not Forget to Convert (12:57)
    • Considerations around the Mega Backdoor Roth (14:27)
    • Wrap-Up (19:27)



    This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice. Subscribe to our weekly planning insights newsletter: https://mdrnwealth.com/blog/ If you need specific advice you can contact us at Advice@mdrnwealth.com or at: https://www.mdrnwealth.com
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