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Is it possible you’re confusing the traditional-401k vs. Roth 401k question, with a Mega-backdoor Roth? Mega-backdoor Roth does not need to be an alternative t
by mercutio2 7y ago
Is it possible you’re confusing the traditional-401k vs. Roth 401k question, with a Mega-backdoor Roth?
Mega-backdoor Roth does not need to be an alternative to a traditional 401k.
AFTER you’ve maxed out your tax advantaged opportunities (mostly, employer 401k), if your employer offers the necessary pre-requisites (of which there are many), a mega-backdoor-Roth is a way to put another $30-40k into a tax advantaged account every year.
It’s an absurdly regressive tax expenditure for the 1%, but if that’s where you’re at, I can’t blame anyone for availing themselves of it.