Podcasts about mega backdoor roth ira

The road towards financial literacy and financial freedom does not need to be a solo, do-it-yourself, figure it out as it goes type of journey. Guest Dr. Jim Dahle (practicing emergency medicine physician and Founder of the White Coat Investor) joins host Dr. Chris Beck to help better illuminate the process of becoming financially literate and securing financial freedom for physicians and others in similar professional arenas. --- This podcast is supported by: RADPAD® Radiation Protection https://www.radpad.com/ --- SYNPOSIS Dr. Dahle begins the episode by driving home how sound and solid financial education coupled with early, prudent financial behaviors can be worth millions over a career. The doctors discuss writing investment plans, goal setting, and understanding of asset allocation to ensure long-term financial success. Dr. Dahle also delves into the Mega Backdoor Roth IRA, practical tips for handling savings and expenses, as well as how to integrate real estate into your investment portfolio. The episode concludes with helpful resources, programs, and conferences available through the White Coat Investor. --- TIMESTAMPS 00:00 - Introduction 04:30 - Savings Tips and Strategies 13:22 - Retirement Goals and Savings Targets 28:20 - Real Estate as an Investment 32:30 - Mega Backdoor Roth IRA 42:59 - Advice for New High-Income Earners 46:09 - Teaching Financial Literacy to Kids 48:15 - Addressing Physician Burnout 53:53 - Common Financial Mistakes by Doctors 58:11 - White Coat Investor Book Giveaway Program --- RESOURCES White Coat Investor: https://www.whitecoatinvestor.com BackTable VI Episode #194 - Financial Basics from the White Coat Investor with Dr. James Dahle: https://www.backtable.com/shows/vi/podcasts/194/financial-basics-from-the-white-coat-investor White Coat Investor Champions Program (For Students): https://www.whitecoatinvestor.com/wci-champions/

Send us a textDo you know how to unlock the power of tax-free retirement savings using a Mega Backdoor Roth? In this episode, Mike Jesowshek provides a beginner's guide to building a Mega Backdoor Roth IRA in 2024. He explains the differences between traditional and Roth IRAs, then details how to maximize retirement savings using the Mega Backdoor Roth strategy. Mike breaks down the steps for contributing beyond standard limits, focusing on how business owners can utilize solo 401(k) plans. He also discusses the long-term benefits of tax-free growth and withdrawals, addressing common concerns and mistakes along the way.Discover the strategies to potentially grow your account to a million dollars in just a few years![00:00 - 05:21] Introduction and Basics of Roth IRAs Roth IRAs allow tax-free growth and withdrawals in retirement.  Traditional vs. Roth: Traditional IRAs offer tax deductions upfront, while Roth IRAs grow tax-free with withdrawals in retirement.  Max contributions for 2024: $7,000 ($8,000 for those over 50).  [05:22 - 11:18] Backdoor and Mega Backdoor Roth ExplainedThe backdoor Roth strategy involves making non-deductible contributions to a traditional IRA and then converting it to a Roth IRA.  Mega Backdoor Roth allows much larger contributions using 401(k) plans.  Benefits of Mega Backdoor Roth include higher contribution limits, tax-free growth, and tax-free withdrawals.  This strategy is beneficial for anyone with access to a 401(k) plan, even those in lower tax brackets.  [11:19 - 14:08] Strategy Steps and ExampleMax out employee contributions, then after-tax contributions, and convert to a Roth the next day.  A business owner can contribute up to $76,000 per year and, with a 12% return, accumulate over $1 million in just 7.5 years.  The earlier you start, the greater the potential for tax-free growth.Direct Quotes:"The beauty behind a Roth is that you take the pain today, but it grows tax-free, and your withdrawals in retirement are tax-free." - Mike Jesowshek, CPA"The Mega Backdoor Roth strategy allows you to supercharge your retirement savings with higher contribution limits and long-term tax advantages." - Mike Jesowshek, CPA"Imagine putting away $76,000 per year into a Roth and seeing it grow tax-free — that's mind-blowing." - Mike Jesowshek, CPA  Check out this episode's blog post: https://www.taxsavingspodcast.com/blog/guide-to-building-a-mega-backdoor-roth______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

It can be overwhelming to think about what you can do to minimize your tax burden. That's why, in last week's episode, we covered 7 year-end tax moves for retirees. This week, we'll tackle what those nearing retirement need to dive into at the end of every calendar year. We all need to be mindful of how our decisions impact our tax burden and this is a great place to start!  You will want to hear this episode if you are interested in... [1:16] Tip #1: Maximum your contributions to your retirement plans [4:05] Tip #2: Consider a Mega Backdoor Roth IRA  [7:30] Tip #3: Do a Roth conversion  [11:52] Tip #4: Make charitable contributions  [14:15] Tip #5: Exercise non-qualified stock options  [15:07] Tip #6: Max out your FSA contributions  [17:14] Tip #7: Max out your HSA contributions Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel   Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

If you're looking to maximize your tax-advantaged retirement contributions, understanding how the Backdoor Roth IRA and the Mega Backdoor Roth IRA work is crucial. We are diving into when these strategies make sense to use, how they work, and how they differ so you can determine which one is best for your retirement savings on this episode of Wise Money. Season 10 Episode 3 Have a question you want to have answered on the show? Call or text 574-222-2000 or leave a comment! Want to speak with a Certified Financial Planner™? Visit www.korhorn.com or call 574-247-5898.  Find more information about the Wise Money Show™ at www.wisemoneyshow.com   Be sure to stay up to date by following us!  Facebook - https://www.facebook.com/WiseMoneyShow   Instagram - https://www.instagram.com/wisemoneyshow/   Want more Wise Money™?  Read our blog! https://www.korhorn.com/wise-money-blog   Watch the guys in the studio: https://youtu.be/j-RrZAJKvb8  Subscribe on YouTube: http://www.youtube.com/c/WiseMoneyShow  Kevin Korhorn, CFP® offers securities through Silver Oak Securities, Inc., Member FINRA/SIPC. Kevin offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. KFG Wealth Management, LLC dba Korhorn Financial Group and Silver Oak Securities, Inc. are not affiliated. Mike Bernard, CFP® and Joshua Gregory, CFP® offer advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results. Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization's initial and ongoing certification requirements to use the certification marks.

Today we answer questions about the Mega Backdoor Roth IRA, answer a few questions about 401(k)s, and discuss if it is worth not rolling an old 401(k) into your new one to provide some added asset protection. We talk about cash vs. bonds and how to evaluate your investment mix. Those questions and more on todays episode! Today's episode is brought to you by SoFi, helping medical professionals like us bank, borrow, and invest to achieve financial wellness. SoFi offers up to 4.6% APY on their savings accounts, as well as an investment platform, financial planning, and student loan refinancing…featuring an exclusive rate discount for med professionals and $100/month payments for residents. Check out all that SoFi offers at https://www.whitecoatinvestor.com/Sofi *Loans originated by SoFi Bank, N.A., NMLS 696891. Advisory services by SoFi Wealth LLC. The brokerage product is offered by SoFi Securities LLC, Member FINRA/SIPC. Investing comes with risk including risk of loss. Additional terms and conditions may apply. The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you! Main Website: https://www.whitecoatinvestor.com  YouTube: https://www.whitecoatinvestor.com/youtube  Student Loan Advice: https://studentloanadvice.com  Facebook: https://www.facebook.com/thewhitecoatinvestor  Twitter: https://twitter.com/WCInvestor  Instagram: https://www.instagram.com/thewhitecoatinvestor  Subreddit: https://www.reddit.com/r/whitecoatinvestor  Online Courses: https://whitecoatinvestor.teachable.com  Newsletter: https://www.whitecoatinvestor.com/free-monthly-newsletter 

This pharmacist tackled his student debt with extreme focus and paid off over $170,000 in only 2 years! He said he and his wife had the goal to get rid of the debt quickly and discussed it in depth before they got married. The student loan pause was a huge motivator to keep plowing as much money as possible towards the loans while they were not accruing interest. This couple is inspiring and shows what you can accomplish with a solid plan and some motivation! After the interview we will be talking about Mega Backdoor Roth IRA for Finance 101. Unlock the power of your retirement savings with the Mega Backdoor Roth Solo 401(k) from My Solo 401k Financial! As the leading provider, My Solo 401k Financial allows you to contribute up to $76,500 annually to your Roth account, enabling tax-free growth and substantial future savings. They simplify the process by helping you open accounts at your preferred bank or brokerage and handling all compliance support. Accelerate your retirement nest egg with a Mega Backdoor Roth Solo 401(k) plan from My Solo 401k Financial! https://www.mysolo401k.net The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor channel is for you! Be a Guest on The Milestones to Millionaire Podcast: https://www.whitecoatinvestor.com/milestones  Main Website: https://www.whitecoatinvestor.com  Student Loan Advice: https://studentloanadvice.com  YouTube: https://www.whitecoatinvestor.com/youtube  Facebook: https://www.facebook.com/thewhitecoatinvestor  Twitter: https://twitter.com/WCInvestor  Instagram: https://www.instagram.com/thewhitecoatinvestor  Subreddit: https://www.reddit.com/r/whitecoatinvestor  Online Courses: https://whitecoatinvestor.teachable.com  Newsletter: https://www.whitecoatinvestor.com/free-monthly-newsletter 

Why would you want to make a Roth contribution? If you believe tax rates will be higher in the future, it could benefit you. How? The contributions grow tax-deferred. When you withdraw the money, it's tax-free. A tax-free income can be very beneficial in retirement. In 2024, you can contribute $7,000 to a Roth IRA. If you're over 50, you can contribute $8,000. However, there are income limits for the contributions. Individuals who make over $161,000 can't contribute.  Thanks to the 2017 tax cut, there are some additional ways you can contribute to a Roth IRA. I cover four ways you can get money into Roth accounts in this episode of Retire with Ryan.  You will want to hear this episode if you are interested in... [1:34] How to make a traditional Roth IRA contribution [4:06] Option #1: The Backdoor Roth IRA [8:06] Option #2: Contribute to a Roth 401K [9:16] Option #3: Do a Roth conversion [13:17] Option #4: A Mega Backdoor Roth IRA Option #1: The Backdoor Roth IRA Let's say you're contributing to a Roth IRA indirectly (I talked about this in episode #176). To do that, you have to set up both a transitional and Roth IRA with the same company. Then, you make a non-deductible contribution to your traditional IRA. After that, you fill out a request form to convert that money to the Roth IRA. They'll move it for you. What's the biggest mistake you have to avoid when doing this? Listen to find out!  Option #2: Contribute to a Roth 401K If you have the option to contribute to a Roth 401K, use it. Why? Because there are no income limits on who can contribute to a Roth 401K. You could make well over the limits to contribute to a Roth IRA and still make a contribution. In 2024, you can contribute $23,000 to a Roth 401K or $24,500 if you're over 50.  Option #3: Do a Roth conversion Currently, everyone can convert money in a traditional IRA or 401K into a Roth IRA or 401K. Let's say you have $100,000 in an IRA that you want to convert. You'd have to pay Federal and State tax on the $100,000 you're converting plus any other earned income for the year.  When would this make sense? You don't have to pay a 10% penalty on the conversion if you're under 59 ½. Secondly, if you think you'll be in a higher tax bracket in retirement, and don't need access to the money now, it might make sense to roll it over. It will have time to make back the money you had to pay in taxes upfront.  But your plan has to offer a Roth 401K. You'd choose the amount you want to convert from the traditional IRA to the Roth 401K. You'd pay taxes on the amount you're converting. 40% of 401K plans offer this feature. But you have to consider if the conversion will push you into a higher tax bracket. Option #4: A Mega Backdoor Roth IRA Some 401K plans allow contributions above the traditional $23,500 limit. The IRS has a total pension profit-sharing contribution limit. For 2024, that number is $69,000. That's the total that your employer can contribute to your retirement plan. Let's say you and your employer contribute $30,000.  Because you haven't hit the maximum, there's an additional $39,000 that can be contributed to your 401K as an after-tax contribution. Then you have to convert it to your Roth account. That's the Mega Backdoor Roth IRA. If you're over 50, you can also contribute the additional $7,500 catchup.  Government 457 plans and most 403B plans don't allow this after-tax contribution. Many 401K plans do.  How do you get the most out of that contribution? Find out in this episode!  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor 7 Backdoor Roth IRA Mistakes to Avoid How a Mega Backdoor Roth IRA Can Accelerate Your Retirement Savings Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Should Jim in New Jersey do the YMYW-infamous Megatron (the Mega Backdoor Roth IRA) or use his Roth 401(k) - and how can he keep bonds out of his Roth accounts? Joe and Big Al discuss the January first start date when it comes to the 5-year rule on Roth conversions for Nancy in Wisconsin, and they spitball on those Roth clocks for withdrawals and tax-efficient investments for Johnny Mercer in Savannah, GA, who also wants to know the pros and cons of bonds vs. bond funds vs. CDs. Plus, should Brad in St. Louis incorporate bonds into his investment portfolio, given the fact that he will have pensions and Social Security providing 5 streams of fixed income in retirement?  Timestamps: 00:58 - The Megatron: Mega Backdoor Roth IRA vs. Roth 401(k) (Jim, NJ) 14:42 - 5-Year Rule on Roth Conversions: How Does January First Default Start Date Apply? (Nancy, WI) 19:43 - 5-Year Rule on Roth Conversions vs. Tax-Efficient Investments, Bond Funds Vs. Bonds Vs. CDs (Johnny Mercer, Savannah, GA) 32:42 - What's the Best Strategy for Incorporating Bonds into Our Retirement Portfolio? (Brad, St. Louis) 40:09 - The Derails Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-451  Complete Roth Papers Package - includes the Roth Basics Guide, the 5-Year Rules for Roth IRA Withdrawals, and the Ultimate Guide to Roth IRAs 10 Steps to Improve Investing Success Investing Basics Guide Episode Transcript Ask Joe & Big Al On Air for your Retirement Spitball Analysis

What in the world is a Mega-Backdoor-Roth IRA? Coach Pete D'Arruda is joined in the studio by Retirement and Insurance Planner, Gregg Berrian, answering your questions and reminiscing on how the Financial Safari came to be. If you have questions about taxes in retirement, or if you want a second opinion on your retirement plan, contact Coach Pete and the team at Capital Financial at (800) 661-7383.See omnystudio.com/listener for privacy information.

A Mega Backdoor Roth IRA is a tax strategy available to employees whose retirement plans allow them to make significant after-tax contributions and to transfer their contributions to a Roth IRA. In other words, if you want to maximize your Roth contributions, you need to understand the power of the Mega Backdoor Roth. So, in this episode, Michael, Tommy and John will be sharing the steps you can take today to ensure you're not going to miss out on what could potentially be the biggest tax loophole of your lifetime, particularly if you are CSRS or CSRS Offset and have acess to the Voluntary Contribution Plan (VCP). Access the full show notes at Mason & Associates, LLC

401k and IRA contribution limits can stand in the way of trying to save a lot of money in a short amount of time. If you got a late start on retirement planning and you're trying to save as much money as possible in a tax-advantaged way, this episode is for you! I'm going to tell you all about the Mega Backdoor Roth IRA: what it is, how it works, who should consider it, and what the alternatives are if you don't qualify. You will want to hear this episode if you are interested in... What is a Mega Backdoor Roth IRA? [1:08]  How a Mega Backdoor Roth IRA works [3:10] Who should take advantage of a Mega Backdoor Roth IRA? [9:37] Alternative options if you don't qualify for the Mega Backdoor Roth IRA [11:47] Understanding traditional Roth accounts Before diving into what a Mega Backdoor Roth IRA is and how it accelerates retirement savings, we need to understand how a traditional Roth account works. With both a Roth 401k and Roth IRA, you contribute money that you've already paid taxes on, allowing it to grow and be withdrawn tax-free. While Roth 401ks are pretty straightforward, Roth IRA contributions are a bit trickier because they depend on your adjusted gross income (AGI) and your tax filing status. For example, the 2022 AGI for those filing as single needs to be under $129,000 to make the full contribution. Additionally, people who are married and file jointly need an AGI under $204,000 to do the same. You can also convert traditional 401k and IRA money over to a Roth IRA by paying taxes on it at your current rates.  There are also limits to how much you can contribute to both accounts. If you are over 50 years old, you can contribute up to $27,000 to a Roth 401k and $7,000 to a Roth IRA. Those under 50 can contribute up to $20,500 and $6000, respectively. These limits pose a potential problem for those who waited for retirement planning and need to increase their saving power. That's why a Mega Backdoor Roth account might be your next best option!  Using a Mega Backdoor Roth IRA To determine if you're eligible for a Mega Backdoor Roth account, you need to make sure your company allows for after-tax contributions and in-service withdrawals on your traditional 401k. The next thing to look at is the total profit sharing contribution limit. This limit is the combined contributions of what you and your employer make. Pending eligibility, those under 50 can save up to $61,000 while those over tap out at $67,500, depending on your specified limit.  The final step to setting up this account would be converting the money over to a Roth IRA as soon as possible. This is why you need in-service withdrawals! Transferring the money out of your pre-tax 401k account into a Roth IRA means you would benefit from the tax-deferred growth that occurs on top of whatever amount you are contributing. To learn more information about Mega Backdoor Roth IRAs and alternative options for those who don't qualify, listen to this episode! Resources Mentioned Episode 25 - Which is Better: Roth IRA or Traditional IRA  Episode 67 - Elimination of the Backdoor Roth IRA and Other Possible Tax Changes  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

This episode we discuss annuities, securities, and the three-fund portfolio. But we are also reaching the end of the year, which means it's time to take an assessment of how you did this year. Check out the End of Year Financial Checklist for 2021 https://www.whitecoatinvestor.com/end-of-year-financial-checklist/. This checklist will help you make sure you did everything you need to do at the end of the year. It's got everything on there from completing your 2021 Backdoor Roth IRA, plus a Mega Backdoor Roth IRA and Roth conversions. It covers making sure you maxed out your 401(k)s and HSAs and 529s ABLE accounts if you have a disabled kid as well as using up your flexible spending account and making sure you have insurance in place and giving to charity before the end of the year, if that's something you're interested in doing. There are a number of other things on that list to make sure you do once a year. This podcast is sponsored by Bob Bhayani at https://drdisabilityquotes.com. He is an independent provider of disability insurance planning solutions to the medical community in every state and a long-time White Coat Investor sponsor. He specializes in working with residents and fellows early in their careers to set up sound financial and insurance strategies. If you need to review your disability insurance coverage or to get this critical insurance in place, contact Bob at https://drdisabilityquotes.com today by email info@drdisabilityquotes.com or by calling (973) 771-9100. The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs for specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor channel is for you! Main Website: https://www.whitecoatinvestor.com  YouTube: https://www.whitecoatinvestor.com/youtube  Student Loan Advice: https://studentloanadvice.com  Facebook: https://www.facebook.com/thewhitecoatinvestor  Twitter: https://twitter.com/WCInvestor  Instagram: https://www.instagram.com/thewhitecoatinvestor  Subreddit: https://www.reddit.com/r/whitecoatinvestor  Online Courses: https://whitecoatinvestor.teachable.com  Newsletter: https://www.whitecoatinvestor.com/free-monthly-newsletter 

Would you like to put $58,000 into a Roth IRA this year, then grow that money, tax-free, until you retire, and then take it out as tax-free retirement income? In this episode, J Barry Watts introduces the mega back door Roth IRA strategy. He shares how some individuals can contribute $58,000 to their Roth IRA, … Continue reading 32. Mega Backdoor Roth IRA Strategy →

Joe & Big Al outline the House Ways and Means Committee's sweeping tax proposal that would impact Roth contributions, Roth conversions, RMDs, the backdoor Roth IRA and mega backdoor Roth (Megatron), marginal and capital gains tax rates, wash sale rules, and more. Plus, safe retirement income and withdrawal strategies, when NOT to do a Roth IRA conversion, and solo 401(k) retirement savings for self-employed small business owners. Show notes, free resources, Ask Joe & Al On Air: https://bizlink.to/ymyw-344

Associates Melanie Wells, CFP®, and Logan Daniel, CFP®, CRPC®, join Chief Investment Officer Troy Harmon, CFA, CVA, to cover a little-known strategy for high income earners to move a significant amount of retirement funds into Roth accounts for tax-free growth. Read the Article: https://www.henssler.com/growing-retirement-funds-tax-free-with-a-mega-backdoor-roth-ira

The Mega Backdoor Roth IRA could be the secret weapon you have yet to use in your retirement saving strategy. If you consider yourself a super saver, looking for alternative ways to save tax efficiently, this could be a great option. This strategy is of most interest to those maxing out all other tax-efficient savings accounts. Including standard employee 401k contributions, Roth IRA, 529, and HSA. In this episode, you'll see why we call this the secret weapon for super savers, as we breakdown who the Mega Backdoor Roth is for, why you might be interested in it, and how it compares to other IRAs. Who should take advantage of the Mega Backdoor Roth IRA? In order to take advantage of the Mega Backdoor Roth IRA, you first have to have access to a 401k that allows after-tax contributions. These are contributions on top of your regular $19k allowable contributions to a 401k in 2019. Hence the "Mega" moniker. So if you are already maxing out your 401K, Roth IRA, 529, and HSA contributions then the Mega Backdoor Roth IRA could be a great extra additional savings opportunity. Many get confused as to why it's called a Mega Backdoor Roth IRA when we are talking about your 401k. Good question. The name derives from where the money will be after you complete the consolidation process. You're now seeing more larger companies and solo 401ks allow for "in-service" distributions. Meaning, you could withdraw portions of your 401k savings, while still employed. The real benefit with this savings strategy, is when you can save the extra after-tax contributions and then roll them to a Roth IRA in the same year. Meaning, you could get a larger amount in to a tax-free savings account to grow for years to come. What's so great about the Mega Backdoor Roth? If done correctly, the Mega Backdoor Roth can allow you to contribute up to 6X what you can contribute to a regular Roth IRA. With a regular Roth IRA, you can contribute only $6,000 per year in 2019. The Mega Backdoor Roth allows you to contribute up to $37,000 extra each year on top of your normal employee 401k contributions. Many people don't know this, but the limit for 401K contributions is $56,000 or $62,000 and for those over 50. Many people assume that the limit is only $19,000. But this $19,000 limit is for pretax contributions. You can actually contribute up to $37,000 more after taxes are withheld (depending on your employer match amount). You can ask your employer if they contribute to after-tax contributions. If you aren't sure then you should contact your HR department. They may not even know about the Mega Backdoor Roth, but if you communicate with them you could get it started in your company. What is the difference between the Mega Backdoor Roth and the regular backdoor Roth? If your income for a married couple is over $203,000 then you are ineligible to contribute to a typical Roth IRA. Instead, you can implement the Backdoor Roth IRA strategy. But this strategy has multiple steps to assure it's done correctly which we wrote about in a previous post. To be a good candidate for this strategy, you need to first move existing pretax accounts to an existing 401K, if you have one. The next step is to contribute $6000 to a regular non-deductible IRA. After completing this, you can convert the non-deductible IRA to a Roth IRA. The issue with the Backdoor Roth is that you can only contribute $6,000 per year. The Mega Backdoor Roth allows you to contribute much more and would be a provision of your 401k account. Essentially, it's the amount above your normal employee contributions ($19k in 2019; or $25k if over age 50) plus your employer match contributions. It's important to consider all of your options to see if the Mega Backdoor Roth is right for your circumstances. Download the Pre-Retirement Checklist Download the Pre-Retirement Checklist here to assure you are taking the steps you can now, to retire with confidence. Outline of This Episode [2:27] Who is the Mega Backdoor Roth for? [4:31] What is the difference between the Mega Backdoor Roth and the regular backdoor Roth? [12:33] How do you know if you can take advantage of the Mega Backdoor Roth? [17:59] What are the risks? Resources and Links Mentioned In Show Thecollegeinvestor.com Article - Understanding the Mega-Backdoor Roth IRA Morningstar.com Article - Heavy Savers, Meet the Mega-Backdoor Roth Article - High Earners Can Still Get into a Roth IRA Article - How to Start a Retirement Plan for Your Small Business Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook Follow Our Podcast on Your Favorite Podcast Platform Apple Podcasts Spotify Google Podcasts

A recent https://www.aboutschwab.com/schwab-401k-participant-survey-2021 (Charles Schwab survey) of 401k participants found that they believed they needed to save at least $1.9 million for their money to last through retirement. When Schwab did this survey in https://www.aboutschwab.com/schwab-401k-participant-study-2019 (2019), the target retirement savings was $1.7 million. People are projecting needing $200,000 more over a short two years! So let's pretend that your number is $1.9 million for retirement. What will it take to get there for the average person? What are some tips to help you get on track? Listen to this episode of Best in Wealth to learn more! [bctt tweet="In this episode of Best in Wealth, I look at some retirement savings research to help you determine if you're on the right track. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode[1:36] Teach your kids financial literacy [4:43] How much do I need to save for retirement? [7:51] How to reach $1.9 million by retirement [9:55] The median retirement savings across different age groups [16:57] My top tips to help you achieve your savings goals [21:56] Are you ready to get focused and disciplined? How to reach $1.9 million by retirementWhile the prospect of having $1.9 million seems daunting, you know that saving early and often will increase your chances of reaching this goal. A 401k or 403B is a great way to start saving and can help you build your nest egg. These plans are capped at $19,500 in 2021 unless you're over 50, then you can contribute an extra $6,500. You can also contribute to a Roth IRA/IRA, which can be up to $6,000 annually (or $7,000 if you're 50+). What about a Backdoor Roth IRA or the https://bestinwealth.com/episodes/mega-backdoor-roth-ira/ (Mega Backdoor Roth IRA)? It's highly technical but that's one of the reasons we all need trusted advisors, right? The median retirement savings across different age groupsEvery three years, the Federal Reserve examines the changes in US family finances, including how much people have saved in retirement accounts. Using data from the 2019 survey, https://crr.bc.edu/ (The Center for Retirement Research at Boston College) calculated the median retirement savings across several age groups: The median IRA/401k balance for someone 35–44 is $51,000. The median IRA/401k balance for someone 45–54 is $90,000. The median IRA/401k balance for someone 55–64 is $120,000. If you're looking to get to $1.9 million by retirement and you're a median saver, how much will you need to save to hit that mark? For the sake of this experiment, I'm going to assume an 8% savings rate (a number slightly lower than the average US stock market return). It's better to be conservative than not save enough. A 35-year-old who has saved $51,000 is clearly in the best position to save more. To get to $1.9 million you'll still need to save $900 a month over 30 years. Can you do that? Of course you can. But older workers would have to save far more. A 45-year-old with $90,000 saved has to save $2,475 a month to hit the $1.9 million by age 65. Can you save that much a month? These are the questions you need to be asking yourself. A 55-year-old with $120,000 saved has to save $9,000 a month to hit the $1.9 million by age 65. That seems extremely daunting, right? [bctt tweet="What is the median retirement savings across different age groups? If the numbers describe you, is it enough to last through retirement? Learn more in this episode of Best in Wealth! #wealth #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] My top retirement saving tipsIf the numbers seem daunting, here are my top recommendations: Tip #1: Start saving now. Tip #2: Start maxing out every retirement account you have, if possible(401k, 403B, 457, IRA, Roth IRA,...

In today's episode Nicholas Olesen, CFP®, CPWA® shares one of the best tools for retirement savings, the Mega Backdoor IRA. The team at Kathmere has found this to be a unique and not well known way to save into a Roth IRA even if you are over the income limit.  In this episode he covers: How the Mega Backdoor Roth IRA contribution works The biggest mistakes people make when trying to do it How the prorata rule can void the benefit of a traditional Roth IRA conversion Flowchart we have used to help navigate the complexities of the Mega Backdoor Roth IRA contribution and also Roth IRA conversions Please send us feedback and any topic or questions you would like us to cover.  Email us at: nolesen@kathmere.com Transcript and other information can be found at: www.kathmere.com  

What is the Mega Backdoor Roth IRA? Can You Do It? Podcast Date: 08/06/20

Backdoor Roth IRA withdrawal rules and the mechanics of the mega backdoor (dump truck!) Roth. Can you still contribute to a Roth after a rollover? How do you calculate Roth conversion taxes due to the pro-rata rule? Also, calculating a long retirement number or by age, a radical portfolio rebalance, why basis, gains, and losses are tracked, and donating stock upon death. Plus, does your financial advisor’s location matter? Transcript, financial resources, ask your money questions: https://bit.ly/YMYW-308

What is the MEGA backdoor Roth IRA conversion and should you do one? How do you create retirement income for the gap between retiring at 66 and taking Social Security at 70 and RMDs at 72? Joe and Big Al also answer a question on the taxation of an overseas inheritance, and they discuss your comments. Access the episode transcript and financial resources and send in your money questions to be answered on the YMYW podcast: https://bit.ly/YMYW-297

What is the Mega Backdoor Roth IRA Contribution? How can it be a game-changer for some high-earning individuals who are already maxing out their 401k plans? If you're investing the maximum you can a year, think of how quickly you can hit financial freedom. If you're passionate about investing as much of your income as you can—this is the episode for you. I explain the step-by-step process of finding out if you qualify. Don't miss it! [bctt tweet="How do you execute a Mega Backdoor Roth IRA contribution? Find out in this episode of Best in Wealth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode[1:33] Dissecting the total compensation package [4:34] Executing a Mega Backdoor Roth IRA Contribution [6:55] Does your 401k plan allow non-Roth after-tax contributions? [9:46] Is there room under the ACP test to make additional contributions? [11:39] Calculating how much you can contribute [13:23] Does your plan allow for in-service distributions? [16:44] Are the non-Roth after-tax contributions moved to a separate account? Mega Backdoor Roth 101The first question you have to ask: Have I made the maximum salary deferral contribution of $19,500 into my 401k? If you're 50 or older, have you contributed $26,000? If you haven't maxed it out, you don't qualify for the Mega Backdoor. You have to focus on maxing out your 401 contributions first. Secondly, Does your 401k plan allow non-Roth after-tax contributions? The answer can be found in your summary plan description. Your employer is legally required to give this to you when you're hired—and if you ask for it again. If you login to your 401k provider's website, you'll often find it under the “documents” tab. If you can't find it, email your HR rep and ask for a copy. If your plan doesn't allow the non-Roth after-tax contribution—you can't move forward. If it IS allowed, you can contribute above and beyond $19,500 (or $26,000). You CAN continue along this journey. The truth is that most plans don't allow this, but it's worth finding out. Is there room under the ACP test to make additional contributions?An https://www.investopedia.com/terms/a/actual-deferral-percentage-actual-contribution-percentage.asp#:~:text=The%20Actual%20Deferral%20Percentage%20(ADP)%20and%20Actual%20Contribution%20Percentage%20(,at%20the%20expense%20of%20others. (ACP test) is typically conducted each year to make sure the 401k plan doesn't unfairly benefit a highly-compensated employee. It limits the amount that highly compensated employees can make. If you've maxed out your 401k, you'll likely fall into that category. Ask your plan sponsor if you're considered highly-compensated. What happens if you don't ask? When the ACP test is done at the end of the year—after you've made the contributions—the money you contributed can get sent back. But if the plan sponsor says you aren't considered highly compensated, you can move forward. [bctt tweet="In this episode of Best in Wealth, find out how to calculate how much you can contribute to a Mega Backdoor Roth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] How to calculate how much you can contributeHow do you calculate how much you can contribute? Add all of the employee and employer contributions that have been made this year—unless you're 50 or over. You do NOT count the extra $6,500 contribution. Once that's added, subtract it from $57,000. Why? In 2020 you can make up to $57,000 worth of retirement contributions inside of your plan. If you have more than one 401k, add up every plan you've contributed to. So you take $57,000 and subtract $19,500 and what your employer contributes you arrive at $31,500. That's the amount you can contribute to the non-Roth after-tax portion of your IRA. Does your plan allow for in-service distributions?You can find the answer to this in...

Strategic bond funds can have up to 15% exposure into stocks; so not only have bonds rallied, but now you may be exposed to stocks in your bond fund that are over bought due to investors chasing yield. Be aware of what you are holding, it might be time to change things up and take some gains. Other topics include: Health and fitness –your next big retirement issue End of year gifting strategies Mega Backdoor Roth IRA's and 401k's     Retirement planning is more complicated than ever. Please join Rob Black and I for our Retirement and Income Planning seminar on Thursday, November 14, 2019 in Burlingame. Click HERE to sign up!   Email your money question to chad@newfocusfinancial.com , or call the show at 1-800-516-1220 on Tuesday's and Wednesday's from 6:00-7:00 a.m. (PDT)   Call 1-888-762-2423 for Wealth Management and Financial Planning services or visit www.NewFocusFinancial.com.

The theme this week is the backdoor Roth IRA strategy. If you make too much money to qualify to make a Roth contribution in 2019, don’t fret. There is a little-known strategy called the backdoor Roth, that will still allow you to make Roth contributions.  Here’s how it works: You make a non-deductible or after-tax IRA contribution to your Traditional IRA. There aren’t income limits on conversions from a Traditional IRA to a Roth IRA, so you can then turn around and convert that contribution to a Roth. Bam. Done. Take that Uncle Sam! Today I’m talking about the Mega Backdoor Roth Strategy. It’s like the backdoor Roth, on steroids! You can only convert $7,000 to your Roth in 2019, using the backdoor Roth strategy, but with the mega backdoor Roth, you can actually save up to $62,000 in a Roth in 2019.  Here’s how it works: Through your 401k plan, you can contribute up to your maximum of $25,000 in 2019 if you’re over 50. In addition to that, if your employer does not provide any matching contributions nor profit-sharing, you could contribute up to an extra $37,000 on an after-tax basis to your 401(k). From there, if your plan allows, you can then rollover the full $62,000 into a Roth.  The stars need to align in order for you to take advantage of the mega backdoor Roth, and your 401k plan needs to have all the right features and language written into the plan document. So this strategy works best for small business owners who have a say in the design of their 401k plan. It works really well for solo entrepreneurs where it’s just you, because it’s much easier to put this type of plan in place. It works best when you don’t have matching contributions, and if you have employees it’s harder to get your contribution amounts up to that $62,000 maximum.  That’s it for today. Before you go, please take a minute to leave an honest review for the One Minute Retirement Tip in Amazon or iTunes. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.  ---------- >>> Subscribe on iTunes: https://apple.co/2DI2LSP >>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs >>> Check out our blog: https://truenorthretirementadvisors.com/blog/ ---------- Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, Roth IRA, roth ira income limits, backdoor roth ira, roth ira income limits 2019, modified adjusted gross income, ira contribution deadline, ira rule, roth conversion, backdoor roth conversion, roth conversion deadline, backdoor roth ira conversion, backdoor roth ira conversion deadline, magi limit, backdoor roth limit, 401k limits 2019

The Mega Backdoor Roth IRA allows you to contribute an additional amount into an Roth IRA due to the fact that some employer 401k plans allow after-tax contributions. Listen to this episode to see if and how you can take advantage of this opportunity. See the full transcription and links to everything talked about in this episode at https://www.whitecoatinvestor.com/classic-blog/ Our podcast today is sponsored by one of my favorite partner companies, Earnest at https://www.whitecoatinvestor.com/refi Save money on your student loans by refinancing with Earnest. The cool thing about Earnest is that you can choose custom terms to fit your budget. You can pick your exact monthly payment. You can select fixed or variable rates. You can even choose your custom term. The shorter the term, the lower the interest rate. They are not going to pass you off to a third party servicer, nor penalize you for making any of your payments early. Your family is always protected with loan forgiveness in the event of your death. You can refinance anything from $5,000 to $500,000, a much wider range than most of these companies offer. Check out Earnest today and get $500 cash back when you refinance.

The Mega Backdoor Roth IRA could be the secret weapon you have yet to use in your retirement saving strategy. If you consider yourself a super saver, looking for alternative ways to save tax efficiently, this could be a great option. This strategy is of most interest to those maxing out all other tax-efficient savings accounts. Including standard employee 401k contributions, Roth IRA, 529, and HSA. In this episode, you'll see why we call this the secret weapon for super savers, as we breakdown who the Mega Backdoor Roth is for, why you might be interested in it, and how it compares to other IRAs. Who should take advantage of the Mega Backdoor Roth IRA? In order to take advantage of the Mega Backdoor Roth IRA, you first have to have access to a 401k that allows after-tax contributions. These are contributions on top of your regular $19k allowable contributions to a 401k in 2019. Hence the "Mega" moniker. So if you are already maxing out your 401K, Roth IRA, 529, and HSA contributions then the Mega Backdoor Roth IRA could be a great extra additional savings opportunity. Many get confused as to why it's called a Mega Backdoor Roth IRA when we are talking about your 401k. Good question. The name derives from where the money will be after you complete the consolidation process. You're now seeing more larger companies and solo 401ks allow for "in-service" distributions. Meaning, you could withdraw portions of your 401k savings, while still employed. The real benefit with this savings strategy, is when you can save the extra after-tax contributions and then roll them to a Roth IRA in the same year. Meaning, you could get a larger amount in to a tax-free savings account to grow for years to come. What’s so great about the Mega Backdoor Roth? If done correctly, the Mega Backdoor Roth can allow you to contribute up to 6X what you can contribute to a regular Roth IRA. With a regular Roth IRA, you can contribute only $6,000 per year in 2019. The Mega Backdoor Roth allows you to contribute up to $37,000 extra each year on top of your normal employee 401k contributions. Many people don’t know this, but the limit for 401K contributions is $56,000 or $62,000 and for those over 50. Many people assume that the limit is only $19,000. But this $19,000 limit is for pretax contributions. You can actually contribute up to $37,000 more after taxes are withheld (depending on your employer match amount). You can ask your employer if they contribute to after-tax contributions. If you aren’t sure then you should contact your HR department. They may not even know about the Mega Backdoor Roth, but if you communicate with them you could get it started in your company. What is the difference between the Mega Backdoor Roth and the regular backdoor Roth? If your income for a married couple is over $203,000 then you are ineligible to contribute to a typical Roth IRA. Instead, you can implement the Backdoor Roth IRA strategy. But this strategy has multiple steps to assure it's done correctly which we wrote about in a previous post. To be a good candidate for this strategy, you need to first move existing pretax accounts to an existing 401K, if you have one. The next step is to contribute $6000 to a regular non-deductible IRA. After completing this, you can convert the non-deductible IRA to a Roth IRA. The issue with the Backdoor Roth is that you can only contribute $6,000 per year. The Mega Backdoor Roth allows you to contribute much more and would be a provision of your 401k account. Essentially, is the amount above your normal employee contributions ($19k in 2019; or $25k if over age 50) plus your employer match contributions. It’s important to consider all of your options to see if the Mega Backdoor Roth is right for your circumstances. Outline of This Episode [2:27] Who is the Mega Backdoor Roth for? [4:31] What is the difference between the Mega Backdoor Roth and the regular backdoor Roth? [12:33] How do you know if you can take advantage of the Mega Backdoor Roth? [17:59] What are the risks? Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts Stitcher Google Play

You’ve probably heard about various types of Roth IRAs, but Chris will introduce you to the Mega Backdoor Roth IRA and discuss how this can be an amazing tool for folks whose income does not allow them to contribute to a Roth IRA. Later on, get some insight into pension options, as well as the dangers of variable annuities.

We continue exploring different retirement accounts with this episode as we look at the backdoor Roth IRA and mega backdoor Roth IRA. Open a traditional IRA, make a non-deductible contribution, and then convert that contribution to a Roth IRA. Makes sense for high income earners who aren't eligible for a Roth IRA. Strategy to have 100% of the conversion come from the non-deductible contributions covered in this episode. Mega backdoor Roth IRA depends on your 401k/403b plan feature. For show notes go to habeshafinance.com/10 Check out White Coat Investor podcast at habeshafinance.com/wcipod --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app --- Send in a voice message: https://anchor.fm/habeshafinance/message

Rob Black talks about AT&T, Tesla, CVS, Fox, Bitcoin, The World Cup, video games, and CFP Chad Burton discusses the Mega Backdoor Roth IRA.See omnystudio.com/listener for privacy information.

"Rob Black & Your Money" - Radio Show June 13 - KDOW 1220 AM (7a-9a) Rob Black talks about AT&T, Tesla, CVS, Fox, Bitcoin, The World Cup, video games, and CFP Chad Burton discusses the Mega Backdoor Roth IRA.See omnystudio.com/listener for privacy information.

"Rob Black & Your Money" - Radio Show June 13 - KDOW 1220 AM (7a-9a) Rob Black talks about AT&T, Tesla, CVS, Fox, Bitcoin, The World Cup, video games, and CFP Chad Burton discusses the Mega Backdoor Roth IRA.

It's Friday! And it's time for Q&A. Today we cover: Should I Move From My Apartment and Buy a House in the Suburbs How do I Set Up a Solo 401(k) So I Can do a Mega Backdoor Roth IRA Should I Work as a 1099 Contractor or a W2 Employee If you'd like to join for a future Q&A show, sign up here: www.RadicalPersonalFinance.com/Patron Joshua