Mega backdoor Roth conversions can significantly boost tax-free retirement savings — but this maneuver is not available for all investors and mistakes are common, experts say.
A mega backdoor Roth conversion involves after-tax 401(k) contributions, which are shifted to Roth accounts.
The full 401(k) limit is $69,000 for 2024, including employee deferrals, employer matches, profit sharing and other deposits.
Mega backdoor Roth conversions are "a great tool when used appropriately," but you need to know your goals first, said certified financial planner Jamie Clark, founder of Ruby Pebble Financial Planning in Seattle.
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Persons:
Roth, deferrals, Jamie Clark, Stanford, Here's
Organizations:
Ruby, Financial, Finance, Mega
Locations:
Seattle