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. If you meet the eligibility requirements, you could save an extra $41,500.

Although the mega option is similar to the backdoor Roth IRA, they’re two distinct accounts.

You could call the mega backdoor option mega as it offers a more considerable after-tax contribution into a Roth IRA.

What Is an Individual Retirement Account (IRA)?

An individual retirement account (IRA) is a savings and investment account with tax advantages.

A traditional IRA uses pre-taxed dollars, while a Roth IRA uses after-tax dollars.

What Is Backdoor Roth 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.

What Is MEGA Backdoor Roth IRA?

The Mega Backdoor Roth IRA allows you to supercharge your investments. While it is complicated, we have highlighted the basic principles to help you make sense of it.  SWIPE UP to read more.