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What Is a Mega Backdoor Roth IRA?

Find out if you qualify for a mega backdoor Roth IRA.

By Motley Fool Retirement TeamUpdated Nov 24, 2024 at 4:53 PM

Key Points

  • A mega backdoor Roth IRA allows high earners to exceed standard Roth contribution limits.
  • Contributions hinge on maxing out 401(k) and potentially nondeductible IRA contributions.
  • For optimal tax advantage, manage conversions and withdraw after-tax contributions quickly.

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