Mega Backdoor Roth 2024

Mega Backdoor Roth 2024. Mega backdoor roth conversions are a lucrative tax strategy that allow for additional roth savings within your 401(k) with no upper limit on income eligibility. Commonly called a backdoor roth conversion, this technique involves the taxpayer moving funds from an existing traditional retirement account to a roth and paying income tax on.

With a backdoor roth, you roll funds from a traditional ira into a roth ira. In 2024, the total dollars allowable into a 401(k) is $69,000 if you’re under 50 and $76,500 if you’re 50 or older.