See if You Qualify For The Mega Backdoor Roth IRA 

The Mega Backdoor Roth takes investing in a traditional 401(k) to the next level for high-income earners. 

If you meet the eligibility requirements, you could stash an extra $41,500 for retirement in a Roth IRA. However, it’s complicated, and mistakes can be costly.

What Is An Individual Retirement Account (IRA)?

IRAs are used to purchase stocks, bonds, mutual funds, target-date funds, exchange-traded funds, and more.

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Roth IRA Versus Traditional IRA

The traditional IRA offers an upfront tax-deduction on contributions with taxable withdrawals during retirement. However, It doesn’t come with income limits.

Backdoor Roth IRA

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The backdoor Roth IRA allows high-income earners to transfer funds from a traditional  IRA to a Roth IRA.

It’s important to note that traditional IRA contributions use tax-deferred income. If you want to make after-tax contributions, look into a mega backdoor Roth IRA.

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