Mega Backdoor Roth IRA: How to Set Up Safely

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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.

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The backdoor option was designed for high-income earners to make a regular Roth contribution using tax-deferred earnings.

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What Is an Individual Retirement Account (IRA)?

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Roth IRA Versus Traditional IRA

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Unfortunately, high-income earners can’t directly contribute to a Roth IRA. Maximum contributions are limited to individuals who earn less than $129,000 (single) and $204,000 (married).

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Backdoor Roth IRA

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