The Mega Backdoor Roth IRA Strategy After 2026 Tax Reform

Episode 60 of Roth IRA with Fexingo breaks down the mega backdoor Roth IRA strategy in the wake of the 2026 tax reform. Lucas and Luna explore how changes to after-tax 401(k) contributions and in-plan Roth rollovers have shifted the landscape for high earners. They walk through a concrete example: a senior engineer at a tech firm who maxes out her pre-tax 401(k), receives a 4% employer match, and then contributes an additional $23,000 in after-tax dollars — all rolled into her Roth IRA tax-free. The hosts discuss the mechanics, the five-year aging rule for each conversion, and why this strategy is suddenly more accessible now that the Tax Cuts and Jobs Act sunset provisions have taken effect. They also compare it to the regular backdoor Roth IRA and highlight pitfalls like the pro-rata rule and employer plan restrictions. By the end, listeners will understand exactly how to execute a mega backdoor Roth and whether it fits their 2026 financial plan. #MegaBackdoorRoth #RothIRA #AfterTax401k #TaxReform2026 #InPlanRothRollover #HighEarnerStrategy #RetirementPlanning #TaxFreeGrowth #Fidelity #Vanguard #IRARules #ProRataRule #FiveYearRule #TaxDiversification #Finance #FexingoBusiness #BusinessPodcast #RothWithFexingo Keep every episode free: buymeacoffee.com/fexingo