

Mega Backdoor Roth Explained: What Is It and How It Works
Unlock one of the most powerful tax and wealth-building strategies available today: the Mega Backdoor Roth. In this episode, Mat Sorensen breaks down how you can contribute up to $70,000 each year into Roth accounts, creating massive tax-free growth for retirement. Originally filmed for the Mat Sorensen YouTube channel, this special episode is now available on the Directed IRA Podcast.
Mat explains step by step:
- Why the Mega Backdoor Roth is so effective for high-income earners
- How to use a 401(k) or Solo 401(k) to maximize Roth contributions
- The role of after-tax contributions and how to convert them
- Key rules, qualifications, and pitfalls to avoid
- Why rolling funds to a Roth IRA can provide greater investment flexibility and lower fees
Whether you’re a high earner with a workplace 401(k) or a self-employed professional with a Solo 401(k), this strategy can help you supercharge your retirement savings and build wealth tax free.
Chapters:
00:00 - Introduction to Mega Backdoor Roth
01:15 - Breaking Down the $70K Strategy
02:12 - After-Tax Contributions Explained
05:17 - Converting to Roth: Two Options
08:19 - Potential Snags and Limitations
10:17 - Disclaimer and Closing
Directed IRA Homepage: https://directedira.com/
Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA
Book a Call: https://directedira.com/appointment/
Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com