#88: Have you maxed out your backdoor + mega backdoor Roth conversions yet?

For high earners, direct contributions to a Roth IRA, and tax-deductible contributions to a traditional IRA, are limited by income thresholds.

But ALL taxpayers – even high earners – can still invest money into a Roth via backdoor Roth conversion. And if your employer’s 401k has the right plan features, you can turbo-charge your Roth conversions another 7x by doing the “mega backdoor” Roth conversion.

What the heck do these mean? And how exactly do you do them?

This week, I share what these concepts are, tips for how to execute them successfully, and what you need to know about your employer 401k to turbo-charge your Roth conversions.

I explain:

• The difference between a backdoor Roth vs. mega backdoor Roth
• How to execute each one + tips to ensure no tax liability when you convert
• What plan features your employer 401k must have to do a mega backdoor Roth
• Workaround if your employer 401k does NOT allow in-plan Roth conversions, but DOES allow after-tax contributions (yes, you can still move that money into Roth)
• How recent proposed legislative changes would curtail the backdoor Roth strategy, and whether you need to worry about it
• A note about doing mega backdoor Roth conversions via Solo 401k.

Check it out here:

https://hackyourwealth.com/mega-backdoor-roth

Have you done a backdoor or mega backdoor Roth conversion before? If you’ve decided not to, what dissuaded you? Let me know by leaving a comment.

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Related links:

• Traditional vs. Roth? How to double-dip on the tax benefits of BOTH
• What is a Solo 401k? And Why It Beats All Other Retirement Accounts
• Everything you need to know about 401Ks (HYW003)
• IRAs, Roth IRAs, and how to get the tax benefits of BOTH (HYW004)
• Schedule a private 1:1 consultation with me
• HYW private Facebook community

Intro/Outro: Old Bossa by Twin Musicom.