The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: welliamwallace on July 28, 2017, 12:04:20 PM
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There's tons of text articles out there attempting to explain the "Mega Backdoor Roth" Contribution, where you rollover money from a after-tax 401(k) to a Roth IRA. Mad Fientist has a pretty good one: http://www.madfientist.com/after-tax-contributions/
I thought it would be helpful to explain it with video and animation since it's so complicated: https://www.youtube.com/watch?v=f64xPe_mLz8 (https://www.youtube.com/watch?v=f64xPe_mLz8) I hope this is useful for anyone that might be confused, the mega backdoor Roth is one of the biggest weapons in the FIRE arsenal for reducing taxes.
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It's definitely something I'm looking into as an addition to my individual 401k plan.
Trying to find the best company that will work with my fidelity individual 401k to add the features needed for the megabackdoor roth.
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Helpful! Thanks.
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Very helpful. Was trying to explain to a friend last night and remembered this post, so I'll definitely be sharing the link.
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I was confused and this is a fantastic explanation. Thanks for making this video. My 401k allows for after tax 401K contribution, will try to start doing it this year.