I'm a Financial Planner: If You're Too Rich for a Roth, Consider a Mega Backdoor Roth (This Is Ho…

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I'm a Financial Planner: If You're Too Rich for a Roth, Consider a Mega Backdoor Roth (This Is How It Works)

Kiplinger·Nancy Hite Cfp R Clu R Chfc R Rfc R·6 months ago

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A mega backdoor Roth IRA is one of the most powerful strategies available to high-income earners who want to maximize tax-advantaged retirement savings.

The name "mega backdoor Roth" sounds big and exciting, and it is. It is a way to get money into a Roth account, where it can grow tax-free and be withdrawn tax-free in retirement, once certain conditions are met.

To fully understand how a mega backdoor Roth IRA works, it helps to first look at its predecessor — the standard backdoor Roth IRA — and then explore how this enhanced version expands your retirement investment options.

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I'm a Financial Planner: If You're Too Rich for a Roth, Consider a Mega Backdoor Roth (This Is How It Works)