+1 Diop. I like your breakdown of the new tax law, and who it applies to in practical terms.
Are you familiar with the Mega Backdoor Roth?
This is a technique that allows you to contribute an extra $37,000 per year to a Roth IRA (above the $6,000 per year limit). The catch is that your employer's 401k plan has to support after-tax contributions to a traditional 401k, and allow in-service rollovers of those after-tax contributions to a Roth IRA.
It sounds like a killer way to grow a bunch of money tax free, but so far I haven't been lucky enough to have an employer with the required 401k features.
Are there other ways to do something similar?
Are you familiar with the Mega Backdoor Roth?
This is a technique that allows you to contribute an extra $37,000 per year to a Roth IRA (above the $6,000 per year limit). The catch is that your employer's 401k plan has to support after-tax contributions to a traditional 401k, and allow in-service rollovers of those after-tax contributions to a Roth IRA.
It sounds like a killer way to grow a bunch of money tax free, but so far I haven't been lucky enough to have an employer with the required 401k features.
Are there other ways to do something similar?