Why Your Advisor Should Tell You About Megabackdoor Roth IRA

In this episode of The Financial Advisor Podcast with Fexingo, Lucas and Luna break down the megabackdoor Roth IRA strategy — a powerful but often overlooked way to supercharge retirement savings. They walk through the mechanics: how after-tax 401(k) contributions, paired with an in-plan Roth rollover or in-service distribution, let high earners stash up to $70,000 (for 2026, under age 50) into a Roth account each year, far beyond the standard IRA or Roth IRA limits. Lucas explains the key prerequisites — your employer must allow after-tax contributions and either in-plan Roth conversions or in-service rollovers — and why many plans don't, so you need to check the summary plan description. They also cover the 'pro-rata rule' trap for Roth IRA rollovers, and how a solo 401(k) for the self-employed can unlock the same strategy. Concrete example: a 45-year-old earning $200,000 with a plan that allows after-tax contributions could add $46,500 after-tax beyond the $23,500 elective deferral limit, and convert it to Roth immediately. Luna challenges Lucas on whether the tax bill is worth it, and they discuss the counterarguments. The episode closes with a practical checklist for listeners to discuss with their advisor. #MegabackdoorRoth #RothIRA #401k #AfterTaxContributions #RetirementPlanning #FinancialAdvisor #TaxStrategy #InPlanRothRollover #Solo401k #ProRataRule #HighEarner #RothConversion #FiduciaryDuty #Finance #WealthManagement #FexingoBusiness #BusinessPodcast #TheFinancialAdvisorPodcast Keep every episode free: buymeacoffee.com/fexingo