Mega Backdoor Roth IRA Explained: How It Works and Who Can Use It

A mega backdoor Roth IRA lets certain employees contribute far more to a Roth than the standard annual IRA limit, sometimes tens of thousands of dollars more in a single year. It works by making after-tax contributions to a 401(k) (separate from the standard pre-tax or Roth 401(k) bucket) and then converting those funds to Roth. In this episode, Ryan walks through the current IRS contribution limits and shows exactly how the math works.The big catch: not every employer plan allows after-tax 401(k) contributions, so this strategy is only available to some workers. Ryan and Aaron keep it practical, covering how to check if your plan qualifies and what to do if it doesn't. This is education, not personal advice; confirm your plan documents with your HR department and a financial professional before acting.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!