Mega Backdoor Roth Explained: What Is It and How It Works

Directed IRA Podcast

Unlock one of the most powerful tax and wealth-building strategies available today: the Mega Backdoor Roth. In this episode, Mat Sorensen breaks down how you can contribute up to $70,000 each year into Roth accounts, creating massive tax-free growth for retirement. Originally filmed for the Mat Sorensen YouTube channel, this special episode is now available on the Directed IRA Podcast.

Mat explains step by step:

• Why the Mega Backdoor Roth is so effective for high-income earners
• How to use a 401(k) or Solo 401(k) to maximize Roth contributions
• The role of after-tax contributions and how to convert them
• Key rules, qualifications, and pitfalls to avoid
• Why rolling funds to a Roth IRA can provide greater investment flexibility and lower fees

Whether you’re a high earner with a workplace 401(k) or a self-employed professional with a Solo 401(k), this strategy can help you supercharge your retirement savings and build wealth tax free.

Chapters:

00:00 - Introduction to Mega Backdoor Roth

01:15 - Breaking Down the $70K Strategy

02:12 - After-Tax Contributions Explained

05:17 - Converting to Roth: Two Options

08:19 - Potential Snags and Limitations

10:17 - Disclaimer and Closing

Directed IRA Homepage: https://directedira.com/

Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA

Book a Call: https://directedira.com/appointment/

Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com

Chapters

1. Introduction to Mega Backdoor Roth (00:00:00)

2. Breaking Down the $70K Strategy (00:01:15)

3. After-Tax Contributions Explained (00:02:12)

4. Converting to Roth: Two Options (00:05:17)

5. Potential Snags and Limitations (00:08:19)

6. Disclaimer and Closing (00:10:17)