Mega Backdoor Roth Made Simple, With Kelley Long

In 2023, investors are able to put $66,000 into their 401(k) or 403(b) plans. But most contribute less than half of that, even if they have sufficient income.

Kelley Long joins Michael to discuss the Mega Backdoor Roth, a strategy for making after tax contributions to a qualified plan and then immediately converting to a Roth account in a nontaxable event.

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Episode Highlights

  • Summary of the Mega Backdoor Roth, including who can and should use it.
  • Why the Mega Backdoor Roth IRA can be a better option than a taxable brokerage account.
  • Step by step walk through the mechanics of executing a Mega Backdoor Roth.
  • Common mistakes made with the Mega Backdoor Roth and the drawbacks associated with this strategy.
  • Potential for the Mega Backdoor Roth to be eliminated in future legislation.

Episode Resources

Today’s Guest: Guest, Company

About The Tax Efficient Investor Podcast

On the Tax Efficient Investor podcast, we show you how to protect, grow, and transfer your wealth by implementing tax-advantaged investment strategies. Host Michael Johnston demystifies tax strategies that are favored by the most successful and sophisticated investors, including 1031 exchanges, IRA & 401k plans, HSA accounts, trusts, real estate, and more.

Michael Johnston
Michael Johnston

Michael is the President at WealthChannel and the host of the Tax Efficient Investor podcast.