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Maxed out on Your 401(k)? Learn About the Beauty of the Mega-Roth Strategy

 

Maxed out on Your 401(k)? Learn About the Beauty of the Mega-Roth Strategy

Jun 17, 2019

One of the first pieces of advice we hear at the beginning of a career is to contribute to a 401(k) plan. But what happens once pre-tax or Roth 401(k) contributions are maximized, and annual limits are met?

The solution might be a Mega-Roth conversion strategy, which involves making an after-tax contribution to a 401(k) and then converting those funds to a Roth account.

The beauty of this strategy is the ability to convert amounts in the plan that otherwise would be tax-deferred to amounts that are tax-free, for little or no additional tax from the conversion.

Take a deep dive into the Mega-Roth conversation.

Author(s)

Tom Krieg
Thomas Krieg, CPA
Partner
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