MEGA BACKDOOR ROTH
WHAT IS A MEGA BACKDOOR ROTH?
For those who’s employer 401(k) plans allow after-tax contributions, the Mega Backdoor Roth allows you to increase your tax advantaged savings.
If you’re over the income limits for a Roth IRA, the after-tax salary deferral feature of your 401(k) allows you to not only fund a Roth vehicle, but defer up to 3 times more than a normal IRA contribution.
HOW WE HELP WITH MEGA BACKDOOR ROTHS
If your company offers this benefit, you should jump at the opportunity to at least assess if it’s right for you. Here’s how we can help:
- Assess how much your cash flow can support. Make sure the loss of income doesn’t hamper your ability to pay for routine living expenses.
- Evaluate large future expenditures on the horizon. Don’t be caught off guard when tax season arrives and a large cash payment is required.
- Help prioritize the Mega Roth vs. funding an HSA? This is the Taj Mahal of saving vehicles.
As a Tech employee, Mega Backdoor Roth contributions can be a valuable piece of your wealth strategy. We can help make sure you are armed with the knowledge to make smart and confident decisions with this benefit and accelerate your financial future.
THE CORDANT WEALTH ADVANTAGE
- Specialized working with Tech Employees
- Fiduciaries & Fee Only
- Transparent and objective