The mega backdoor Roth IRA is generally considered better for retirement savings due to its higher contribution limits and the fact that it offers more flexibility
Absolutely, the mega backdoor Roth IRA is a game-changer for high-income earners. The ability to contribute up to $39,000 annually, combined with the tax free growth and withdrawals in retirement, makes it an incredibly powerful tool for building wealth
The flexibility it also offers by allowing you to convert funds from a traditional 401(k) or 403(b), providing you with the opportunity to take advantage of tax free growth and withdrawals even if you’re above income limits for traditional Roth IRA contributions.
The mega backdoor Roth IRA is a great way to diversify your retirement income streams. By having a tax free source of income in retirement, you can reduce your reliance on taxable accounts and create a more sustainable income stream.
I completely agree, diversification is key in retirement planning and the importance of spreading risks across different asset classes and income streams cannot be over emphasized. I plan on diversifying my retirement income streams also.
I’ve worked with Cahill too, and his guidance on mega backdoor Roth IRAs has been invaluable. He’s the perfect person to consult for this type of planning. His expertise in navigating the complexities of retirement accounts and strategy is truly exceptional.
For mega backdoor Roth: Is it possible to contribute 69k in ONLY after-tax dollars? So no Roth/Traditional 401k contributions. Just wondering as it would be a way to get even more money into my Roth IRA
Question: I already contributed to a Roth IRA (8k/yr). Can I open up a traditional IRA (after tax $) & convert more funds into it as a Roth? That would allow more money into a Roth each year…does that make sense? Thanks!
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years
Please explain the differences, or restrictions, when contributing to a company’s 403b Roth AND a regular, personal Roth at the same time. The answers I get leave me more confused.
Roth 403b limit is about $23,000 and $30,000 if over 50. Roth IRA is about $7,500 and $8,500 if over 50. I say about because they keep changing every year. You can contribute to both. The limits are combined whether you are contributing to traditional or Roth, ie., $2,000 in traditional IRA and $5,500 in Roth IRA is maxing out your $7,500 IRA limit for the year.
The mega backdoor Roth IRA is generally considered better for retirement savings due to its higher contribution limits and the fact that it offers more flexibility
Absolutely, the mega backdoor Roth IRA is a game-changer for high-income earners. The ability to contribute up to $39,000 annually, combined with the tax free growth and withdrawals in retirement, makes it an incredibly powerful tool for building wealth
The flexibility it also offers by allowing you to convert funds from a traditional 401(k) or 403(b), providing you with the opportunity to take advantage of tax free growth and withdrawals even if you’re above income limits for traditional Roth IRA contributions.
The mega backdoor Roth IRA is a great way to diversify your retirement income streams. By having a tax free source of income in retirement, you can reduce your reliance on taxable accounts and create a more sustainable income stream.
I completely agree, diversification is key in retirement planning and the importance of spreading risks across different asset classes and income streams cannot be over emphasized. I plan on diversifying my retirement income streams also.
I’ve worked with Cahill too, and his guidance on mega backdoor Roth IRAs has been invaluable. He’s the perfect person to consult for this type of planning. His expertise in navigating the complexities of retirement accounts and strategy is truly exceptional.
For mega backdoor Roth: Is it possible to contribute 69k in ONLY after-tax dollars? So no Roth/Traditional 401k contributions. Just wondering as it would be a way to get even more money into my Roth IRA
I also asked a similar question…thanks for your question. Hope to get an understanding of the rules
It is clear as mud.😂
Using both, not sure what us there to discuss except max contribution. If you are one of the happy few you can still do both if maxing out.
Question: I already contributed to a Roth IRA (8k/yr). Can I open up a traditional IRA (after tax $) & convert more funds into it as a Roth? That would allow more money into a Roth each year…does that make sense? Thanks!
Should you do Mega Backdoor Roth vs Roth Conversion with your extra after tax money??
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years
consider financial advisory so you don’t keep switching it up... those sound like great picks anyways, not bad for 350k
@@beautifulpeoplealways this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing
Please explain the differences, or restrictions, when contributing to a company’s 403b Roth AND a regular, personal Roth at the same time. The answers I get leave me more confused.
Roth 403b limit is about $23,000 and $30,000 if over 50.
Roth IRA is about $7,500 and $8,500 if over 50. I say about because they keep changing every year.
You can contribute to both. The limits are combined whether you are contributing to traditional or Roth, ie., $2,000 in traditional IRA and $5,500 in Roth IRA is maxing out your $7,500 IRA limit for the year.