Timothy Sumer

In this video I'm talking about the Mega Backdoor Roth IRA for 2021 and going beyond with additional Roth IRA savings. You may be able to really get a ton more into your Roth IRA than you thought possible. The maximum contribution to a retirement plan maxes out at $19,500 but you could get up to $58,000 using this strategy but that's only part of it. The self employed or small business owner may have a better chance of using this mega backdoor Roth IRA strategy with a solo 401k but you may be able to do with your retirement plan at work. The first type of strategy is using an in-plan-conversion where you go from the traditional side of the 401k or other retirement plan to the Roth 401k side. The in-plan-conversion would count all the pre-tax and growth associated with the plan as a taxable event. However, if you use a non-deductible contribution and a plan distribution or rollover you may be able to avoid taxes while still getting the money into the Roth IRA. T