The Mega Backdoor Roth IRA (MBDR for short) takes the benefits of the Backdoor Roth IRA strategy we’ve discussed and magnifies them. If you haven’t already, check out our content on the Backdoor Roth IRA - it provides the foundation for this article. Executive Summary The Mega Backdoor Roth IRA (MBDR) lets high earners put more money into Roth accounts than standard limits allow. It works by making after-tax contributions to your 401(k), then converting them to a Roth Require

Let’s talk about a strategy that can help high earners maximize tax-free retirement growth: the Backdoor Roth IRA. Even if your income prevents direct Roth IRA contributions, this approach lets you take advantage of Roth IRA benefits. In this article, we discuss how it works, who qualifies, and what to watch out for. Executive Summary Roth IRAs allow tax-free growth and withdrawals in retirement, with no required minimum distributions (RMDs). High earners may be ineligible to

Roth conversions are a hot topic in the world of finance. In this article, I’ll break down what they are, who they may (or may not) make sense for, and how to approach them in your financial planning. It’s important to first understand the basics of Roth IRAs, so if you haven’t, I suggest reading this article first. Executive Summary Roth conversions let you pay taxes now in exchange for tax-free withdrawals later. They work best when your current tax rates are lower than wh

Roth is a powerful type of qualified retirement account that, when utilized, can help you save for retirement, provide greater tax diversification when investing, and create more tax-free wealth over the long term for you and your heirs. Executive Summary Roth IRA accounts offer tax-free growth and withdrawals in retirement. Contributions are made with after-tax dollars, allowing tax-free earnings. Withdrawals of contributions are always penalty- and tax-free. Earnings withdr