mega backdoor roth ira: is it really mega?

[{"selector":"#anim-3bd600ad-d71f-49ff-be03-725d4ae64178","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0728f769-53bb-4afe-9cc0-5b306b9b7b2f","keyframes":{"transform":["translate3d(0px, -285.9789%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-af6a2d58-7495-48f9-a99d-da7e9958ed5c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-09e8b184-3c61-447e-adf8-6f0e4cc960d5","keyframes":{"transform":["translate3d(0px, -190.82897%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4a9df817-5ed7-4902-9489-f5a2a5377bf8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4419e1df-97f0-444a-ba56-9749aaba5dc7","keyframes":{"transform":["rotate(-218deg) translate3d(0px, -73.38953%, 0) rotate(218deg)","rotate(-218deg) translate3d(0px, 0px, 0) rotate(218deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

The Mega Backdoor Roth takes investing to the next level for high-income earners. If you meet the eligibility requirements, you could stash an extra $41,500. However, it’s complicated, and mistakes can be costly.

[{"selector":"#anim-aa392365-e507-4af7-8876-1c1612508ca7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8de466c1-0447-4881-a8ee-400b8c680095","keyframes":{"transform":["translate3d(0px, 192.57797%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e96a8ec6-a337-4c68-88dd-32f3e8849515","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-49274da1-42bd-4a9f-ad66-5d12e2238194","keyframes":{"transform":["translate3d(0px, 52.00946%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ec424802-b6e9-46e3-aad8-0f0e7980400b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-820bef03-e588-4c2d-a5a4-c199e791b1e7","keyframes":{"transform":["translate3d(0px, -63.77677%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-329c7694-4d51-45fd-97c3-68cb1a6d2bf3","keyframes":{"opacity":[0,1]},"delay":0,"duration":500,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-222c8f02-c453-4e61-ac21-04bcab678388","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":500,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

What Is an Individual Retirement Account (IRA)?

[{"selector":"#anim-33c3ed3d-b997-4aa7-b2b4-e9f80547e32e","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-15440d95-ff69-4793-a7b8-0ee24ab840ef","keyframes":{"transform":["translate3d(0px, 221.65528%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-691b037f-99da-429d-8fc0-222ef98bcd57","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-04447936-b7d3-4c4f-875c-c6e77090567b","keyframes":{"transform":["translate3d(0px, 387.92856%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f2760914-de74-418d-9a59-43bf1b015621","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-acf2bd8c-4d96-4f3a-b44d-84c7630c11dd","keyframes":{"transform":["translate3d(41.43921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-845c453e-803e-4a1c-98a8-5777fd9c7cbf","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c279f7ff-644c-406a-a74e-c9897f0ee62c","keyframes":{"transform":["rotate(-54deg) translate3d(0px, 79.93877%, 0) rotate(54deg)","rotate(-54deg) translate3d(0px, 0px, 0) rotate(54deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-68eb3062-b5f4-4c8c-a75b-54669cc30e0e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3d23c5f8-4c36-4f86-8a8e-a160b2a0c65b","keyframes":{"transform":["translate3d(0px, -96.21636%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] An individual retirement account (IRA) is a savings and investment account with tax advantages. A traditional IRA uses pre-taxed dollars. As a result, it has tax savings. Learn more

Roth IRA Versus Traditional IRA

[{"selector":"#anim-17f90f5f-b006-4bf4-9d08-9a04fb34a217","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0d240e40-d901-47e1-88a0-634356110dd4","keyframes":{"transform":["rotate(-45deg) translate3d(0px, 160.07567%, 0) rotate(45deg)","rotate(-45deg) translate3d(0px, 0px, 0) rotate(45deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6cfddc8e-b15b-45e4-bd53-63bd6e9cbbf8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-59f21a11-fc84-405a-8175-ce8aa6bea5fc","keyframes":{"transform":["rotate(-182deg) translate3d(169.72706%, 0px, 0) rotate(182deg)","rotate(-182deg) translate3d(0px, 0px, 0) rotate(182deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7d626ea8-4137-4a2c-b776-bdb17ca0ae0c","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d192eb79-f642-4041-8c38-b85b190a6110","keyframes":{"transform":["translate3d(0px, -180.91651%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bced2e70-f718-4aae-8f20-2f288840203a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2ac74e7a-6e77-4bd0-942f-0f48401bdfc4","keyframes":{"transform":["translate3d(0px, -213.05119%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-47c8c4bb-12d3-4d2f-87a0-77606f5c1e0d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3be5a666-8d8b-4d0f-90cb-c4d6d4a1d3ea","keyframes":{"transform":["translate3d(0px, 98.96361%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A Roth IRA is an individual retirement account (IRA) funded with after-tax dollars. The traditional IRA offers an upfront tax-deduction on contributions with taxable withdrawals during retirement. However, It doesn’t come with income limits. Learn more

Backdoor Roth IRA

[{"selector":"#anim-a3937aff-8d9f-42b1-9ef8-c7a8093ec1af","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b6e86304-d760-442a-b9dd-d3bc1352514b","keyframes":{"transform":["rotate(-63deg) translate3d(0px, 81.97410%, 0) rotate(63deg)","rotate(-63deg) translate3d(0px, 0px, 0) rotate(63deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-612c2641-61ad-460e-b64a-7f309cdd6077","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b64d3bfe-7ded-4af3-8c4e-466d39fc0f9c","keyframes":{"transform":["translate3d(41.43921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-43da8a68-e994-4ade-896c-90d2caff0f93","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eccfc45e-215a-41f9-9057-07311e239f30","keyframes":{"transform":["translate3d(0px, 245.65661%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1592e344-73e7-4e0d-9aa9-2e4de5a55f01","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8439e944-7683-45e2-93eb-6ecb37eb5975","keyframes":{"transform":["translate3d(0px, 978.82016%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The backdoor Roth IRA allows high-income earners to transfer funds from a traditional IRA to a Roth IRA. Individuals must pay taxes on the money that is transferred. Learn more

Mega Backdoor Roth IRA

[{"selector":"#anim-f39de2ee-dabe-4517-a772-d129d5284e02","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1898082f-6166-4c67-8285-24128550db99","keyframes":{"transform":["rotate(-63deg) translate3d(0px, 170.86798%, 0) rotate(63deg)","rotate(-63deg) translate3d(0px, 0px, 0) rotate(63deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c20ad4ab-2862-49bc-add8-73d4db5bc86f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0231e7c5-35eb-4663-b682-9970663fabcd","keyframes":{"transform":["rotate(-182deg) translate3d(169.72706%, 0px, 0) rotate(182deg)","rotate(-182deg) translate3d(0px, 0px, 0) rotate(182deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6b20cfdf-56aa-40ad-b3a3-b57140dd332c","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bc0be369-e26d-4619-80d1-66c625b9391e","keyframes":{"transform":["translate3d(0px, -262.47158%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-599d0594-d3ec-497f-a29b-1ab30a54f78c","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d42faac4-21f4-4196-8cd4-d3c89ce40d97","keyframes":{"transform":["translate3d(0px, -206.20908%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5d8b79d8-0844-49e5-a23f-21056720a211","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e51b886c-9fa8-490f-9bed-d787f046bd8b","keyframes":{"transform":["translate3d(0px, 97.89907%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The Mega Backdoor Roth IRA allows you to supercharge your investments. The Mega Backdoor Roth IRA is complicated. However, here are the basic principles: Learn more

[{"selector":"#anim-abf76680-de8f-4dbb-90ba-a2093296c68c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-be2614a9-2113-40bf-8a3d-66a15eec0d44","keyframes":{"transform":["rotate(-63deg) translate3d(0px, 81.97410%, 0) rotate(63deg)","rotate(-63deg) translate3d(0px, 0px, 0) rotate(63deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-99f69f5d-78e2-4720-b079-52282447ce8d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-aa50af52-1fc8-418b-821b-90075b6bb4e0","keyframes":{"transform":["translate3d(41.43921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7601bd92-5f58-4544-8052-2eeacdad100e","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0ce9793c-967d-4588-a161-6005b26f0670","keyframes":{"transform":["translate3d(0px, 191.11109%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e36006e2-e55b-4d03-b8f6-c48a8385d912","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-48dd847a-699c-4024-87ba-314f31e360ff","keyframes":{"transform":["translate3d(0px, -96.53916%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 1. Your company must offer the option to make after-tax contributions to your 401(k). 2. Your company must allow your 401(k) conversions to a Roth IRA. 3. You have to max out your traditional 401(k) contributions. Learn more

SWIPE UP TO LEARN MORE ABOUT MEGA BACKDOOR ROTH IRA

[{"selector":"#anim-6430a6bc-1c6d-451d-bc20-74a9275607e6","keyframes":{"opacity":[0,1]},"delay":250,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ec0e6374-8389-498a-9adc-fa41e2074bd5","keyframes":{"transform":["translate3d(0px, 254.92780%, 0)","translate3d(0px, 0px, 0)"]},"delay":250,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7c787d2f-b596-46b1-b5f9-ebd02d9513b4","keyframes":{"opacity":[0,1]},"delay":0,"duration":500,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3ba11219-0d5e-4522-a0a9-1d3dea3a1d2a","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":500,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

LEARN More