The Personal Finance Podcast The Mega-Back Door Roth IRA (How to Get an Extra $43,500 in Your Roth!)
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Sep 11, 2023 Learn about the mega backdoor Roth IRA strategy and how it can help contribute an additional $43,500 to your Roth IRA every year. Explore the benefits of the Roth IRA retirement account, including tax advantages and flexibility. Discover how to utilize the mega backdoor Roth IRA strategy by making after-tax contributions to a 401k plan. Understand the process of utilizing the backdoor Roth IRA strategy for high-income earners.
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Benefits of Roth IRA
- Roth IRA contributions grow tax-free and can be withdrawn tax-free after 59½.
- They provide tax diversification and avoid required minimum distributions, benefiting Social Security taxation.
Roth IRA Flexible Withdrawals
- Roth IRA offers flexible withdrawal rules without required minimum distributions.
- Contributions can be withdrawn anytime tax-free after five years, which adds flexibility during emergencies.
Check Employer 401k Features
- Verify if your employer offers after-tax 401k contributions and in-service withdrawals before attempting the mega backdoor Roth IRA.
- Contact HR or your plan provider to confirm these plan features.