You could call the mega backdoor option mega as it offers a more considerable after-tax contribution into a Roth IRA. However, it’s not for everyone. The choice comes with a few limitations. Nevertheless, it works great for some. So, it’s worth learning about it. In this article, we’ll talk about the basic rules of a Mega Backdoor Roth to see how it works in 2022.
You can open an IRA through a bank, investment brokerage, or employer. Through employers, IRAs are 401k, Roth 401k, 403b, Roth 403b, Thrift Savings Plan, or SEP (Simplified employee pension).