mega backdoor roth ira:

is it really mega?

The Mega Backdoor Roth takes investing in a traditional 401(k) to the next level for high-income earners. Today, we’ll talk about the basic rules of a Mega Backdoor Roth to see how it works in 2022.

An individual retirement account (IRA) is a savings and investment account with tax advantages. It's used to purchase stocks, bonds, and mutual funds.

What Is an Individual Retirement Account?

Although both types of IRAs come with similar contribution limits, high-income earners lose out on tax-free growth that comes with a Roth IRA. 

Roth IRA Versus Traditional IRA

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.

The Mega Backdoor Roth IRA allows you to supercharge your investments. The Mega Backdoor Roth IRA is complicated.

Mega Backdoor Roth IRA

Individuals investing in a Mega Backdoor Roth IRA earn more than $144,000 annually. They must work for a company that allows after-tax contributions and Roth rollovers.

Who’s Eligible?

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