A mega backdoor Roth 401(k) can give high earners a way to save even more for retirement. This strategy allows them to put substantially more money into Roth savings than standard contribution limits normally allow. The strategy uses after-tax 401(k) contributions that are later converted to Roth, potentially creating years or decades of tax-free growth. However, the details matter. Your employer’s plan rules, employer contributions, conversion timing, and tax situation matter here. They affect how much you can contribute and whether the strategy even delivers its intended benefit.
A financial advisor can help you review your plan’s after-tax…
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