How the ‘Mega-Backdoor Roth’ Works
#RothIRA #BackdoorRoth #IRAInvesting
Baird director of advanced planning Tim Steffen discusses what high-income heavy savers need to know about this maneuver.
What You Should Know About Backdoor IRAs
https://www.morningstar.com/personal-finance/what-you-should-know-about-backdoor-iras-2
00:00:00 Introduction
00:00:25 What Is a Backdoor Roth IRA?
00:01:38 How Aftertax 401(k) Contributions Differ From Roth Contributions
00:03:08 When Should Investors Make Aftertax Contributions?
00:04:07 Maximum Contribution Limits for Retirement Accounts in 2026
00:05:37 Advantages to In-Plan Conversions for Aftertax 401(k) Contributions
00:07:09 Do All Plans With Aftertax Contributions Have In-Plan Conversions?
00:07:34 The Pro Rata Rule and Aftertax Account Withdrawals
00:08:42 Key Considerations for Aftertax Versus Taxable Brokerage Account Contributions
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