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Put very simply, the mega backdoor Roth strategy entails 2 steps: (1) making after-tax contributions to your 401(k) or other workplace retirement plan, and (2) then doing a conversion either to a Roth IRA or Roth 401(k).
A mega backdoor Roth lets you roll over up to $43,500 from a traditional 401(k) to a Roth IRA or a Roth 401(k) in 2023, all without paying any taxes you’d normally owe with such a conversion.
A mega backdoor Roth takes a backdoor Roth to the next level and is specifically for people with a 401 (k) plan at work. They can put up to $46,000 of post-tax dollars in 2024 into their...
A mega backdoor Roth 401 (k) conversion is a tax-shelter strategy available to employees whose employer-sponsored 401 (k) retirement plans allow them to make substantial...
A mega-backdoor Roth IRA lets you boost your annual Roth IRA contributions to over $30,000. To build a mega-backdoor Roth IRA, you'll need to make after-tax 401(k)...
A mega backdoor Roth conversion makes sense for higher earners who otherwise would have invested their extra money in a brokerage account, which is subject to yearly...
What is a Mega Backdoor Roth Conversion (aka After Tax to Roth Conversion)? In order to understand what an after-tax to Roth or mega backdoor Roth conversion is, you must first understand the three types of employer-sponsored retirement contributions you can make.