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How to LEGALLY Contribute More $ to Roth Accounts (IRA/401K)


In this video, I talk about the different ways you can contribute more money to a Roth IRA/401k legally (higher than set limits) using after tax contributions and discussing my own experience. 0:35 - Contribution Limits and Rules 3:00 - Tax Savings Over Time 3:44 - After Tax vs. Roth Contributions 4:19 - Converting After Tax Contributions 7:43 - Other Pro of Roth IRA 🎉Portfolio Access & Weekly Report, Real-Time Trades & Support, and Exclusive Livestreams & Voting Power: Join the Free Discord Investing Community: Get up to $1850 of free stocks with Webull when depositing $100: Free $10 for creating an account with Public: Stock Market Research, News, and Analyst Forecasting Tool (TipRanks Premium): Free $10 in Bitcoin when you buy $100 on Coinbase: CONNECT WITH ME ONLINE Disclaimers: Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. Sponsored affiliates are: Webull, Public, TipRanks, Coinbase or otherwise acknowledged!...(read more)



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When it comes to saving for retirement, there are few investment vehicles as advantageous as Roth accounts. These accounts offer tax-free growth and withdrawals, which means you can maximize your savings and minimize your tax liability in retirement. However, there are limits to how much you can contribute to Roth accounts each year, and many people find themselves hitting those limits without realizing it. In this article, we’ll explore how to legally contribute more money to Roth accounts such as IRAs and 401(k)s. First, it’s important to understand the contribution limits for Roth accounts. In 2021, the maximum contribution you can make to a Roth IRA is $6,000 ($7,000 if you’re over 50). For a 401(k) plan, the maximum contribution is $19,500, with an additional $6,500 catch-up contribution for those over 50. These limits may seem high, but many high-earning individuals with aggressive savings goals find themselves hitting the limits early in the year. The good news is that there are several strategies you can use to legally contribute more money to Roth accounts. Here are a few to consider: 1. Use a backdoor Roth IRA. If you make too much money to contribute directly to a Roth IRA, you can still contribute indirectly through a backdoor Roth IRA. This involves contributing to a traditional IRA and then converting the funds to a Roth IRA. There are no income limits for traditional IRA contributions, so this allows you to bypass the income restrictions on Roth IRA contributions. However, there are tax implications to this strategy, so it’s important to consult with a financial advisor before making any moves. 2. Max out your 401(k) contributions. If you’re hitting the contribution limit for your Roth IRA, consider maximizing your contributions to your 401(k) plan instead. This will not only boost your retirement savings, but it will also reduce your taxable income, potentially putting you in a lower tax bracket. This allows you to save more money overall and keep more money in your pocket at tax time. 3. Consider a Roth 401(k) plan. Many employers now offer Roth 401(k) plans, which combine the benefits of a traditional 401(k) plan with the tax-free growth and withdrawals of a Roth IRA. If your employer offers this option, it’s worth considering. You can contribute up to the same limit as a traditional 401(k), but your contributions will be after-tax. This means you won’t get a tax deduction for contributions, but you’ll enjoy tax-free withdrawals in retirement. 4. Use a spousal IRA. If you’re married and one spouse is not working or earns a low income, you can make contributions to a spousal IRA on their behalf. This allows you to contribute an additional $6,000 to a Roth IRA or traditional IRA, depending on your income level. This is a great option for couples who want to maximize their retirement savings but are hitting contribution limits on their individual accounts. In summary, there are several ways to legally contribute more money to your Roth accounts, even if you’re hitting contribution limits. By using a backdoor Roth IRA, maxing out your 401(k) contributions, utilizing a Roth 401(k) plan, or taking advantage of a spousal IRA, you can boost your retirement savings and enjoy tax-free growth and withdrawals when you need them most. To ensure you’re making the most of your retirement savings options, consult with a financial advisor or professional tax preparer. https://inflationprotection.org/how-to-legally-contribute-more-to-roth-accounts-ira-401k/?feed_id=75720&_unique_id=6403689fedc74 #Inflation #Retirement #GoldIRA #Wealth #Investing #401k #aftertaxcontributionsconvertedtorothira #Aftertaxcontributions #howtocontributemoretorothira #howtocontributemoremoneytoroth401k #howtocontributemoremoneytorothira #howtocontributemoretoroth #howtolegallycontributemoretoRothaccounts #MegaBackdoorRoth401k #retirementaccounts #ROTH401k #RothIRA #rothiraconversion #rothiraexplained #rothirainvestimentoptions #rothirainvesting #rothirataxsavings #rothiravs401k #VanguardIRA #401k #aftertaxcontributionsconvertedtorothira #Aftertaxcontributions #howtocontributemoretorothira #howtocontributemoremoneytoroth401k #howtocontributemoremoneytorothira #howtocontributemoretoroth #howtolegallycontributemoretoRothaccounts #MegaBackdoorRoth401k #retirementaccounts #ROTH401k #RothIRA #rothiraconversion #rothiraexplained #rothirainvestimentoptions #rothirainvesting #rothirataxsavings #rothiravs401k

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