Roth conversions

A mega backdoor Roth is a type of Roth conversion that helps those with an eligible solo 401(k) or standard 401(k) save more for retirement. In the case of a solo 401(k), it creates an additional bucket to keep filling your solo even after you’ve maxed out the account’s employee and/or employer contribution limits. Here’s how. A quick refresher on solo 401(k) contribution limits Solo 401(k)s come with an annual overall contribution limit of $72,000 for 2026, but that includes two sub-limits ...

A Roth conversion moves money from a pre-tax or after-tax retirement account (typically a traditional IRA) into a Roth account. When moving from a pre-tax account, you pay taxes on the converted amount now in exchange for tax-free qualified withdrawals later. A conversion is often used as part of a “backdoor” Roth, a popular move for high earners whose income exceeds the limits for Roth IRA contributions. Roth conversions have a few other use cases too, including a mega backdoor Roth by way of ...