If you're making good money, you already know the IRS won't let you contribute directly to a Roth IRA once you hit certain income limits. But there is a way around it—and it’s called the Mega Backdoor Roth IRA.
(There’s the backdoor Roth… and then there’s the backdoor, down the stairs, secret knock Roth.)
The Mega Backdoor Roth IRA is a perfectly legal, carefully structured strategy that lets high earners sidestep those income caps—and put up to $70,000 (or $77,500 if you're over 50) into a Roth account each year. That’s nearly 10x the standard $7,000 contribution limit.
I'm talking about the Mega Backdoor Roth IRA—a walk up to the line but don’t cross it strategy that lets you contribute up to $70,000 (or $77,500 if you're over 50) to your Roth IRA, way more than the regular $7,000 limit.
Here's how it works:
Now your money grows tax-free and comes out tax-free in retirement. No taxes, no required minimum distributions (RMDs), just pure, clean wealth building.
But here's the catch: If you have other pre-tax IRAs (like a SEP or SIMPLE IRA), you'll need to use this strategy with caution. The pro-rata rule could make part of your conversion taxable—unless you take steps to avoid it.
The fix: Roll your pre-tax IRAs into a Solo 401(k). This eliminates the pro-rata rule and keeps your Roth conversion clean and tax-free.
This is a HUGE advantage for business owners, high earners, or anyone who wants to maximize their Roth contributions without hitting the income limits.
Bottom line: The Mega Backdoor Roth is one of the most powerful tax-free retirement tools out there.
But only if you do it right.
Want to learn how to use this strategy and avoid the pitfalls? Let’s talk. We’ll make sure you’re set up for success and ready to contribute $70K to your Roth IRA.