Hidden Tax Free Retirement Income Hack: MEGA Backdoor Roth & Backdoor Roth

Money Mastery Unleashed Podcast: Weekly Newsletter

Episode Highlight: Supercharge Your Tax-Free Retirement

Hello Money Masters!

In this week's episode of the Money Mastery Unleashed Podcast, I'm diving deep into how you can supercharge your tax-free retirement by putting over $70,000 away per year into your Roth bucket. This little-known strategy could be a game-changer for your financial future.

Watch it HERE

Episode Summary

Adam Olson, CFP and advisor with Mutual of Omaha, with over 14 years of experience, discusses two powerful strategies to maximize your Roth contributions:

• Mega Backdoor Roth Strategy: Implement through your 401(k) plan at work, allowing you to convert after-tax contributions to Roth.
• Backdoor Roth Strategy: Make a non-deductible contribution to a traditional IRA, then convert it to a Roth IRA, ideal for high-income earners.

These strategies can set you up for a tax-free retirement, providing significant tax advantages both now and in the future.

Key Takeaways

1. Roth IRA Contributions:
2. Roth 401(k) Contributions:
3. Backdoor Roth Strategy:
4. Mega Backdoor Roth Strategy:

Weekly Challenge: Review and Plan

This week, take some time to review your current retirement savings strategy and see if you can implement the Mega Backdoor Roth or Backdoor Roth strategies. Here’s how:

1. Check Your 401(k) Plan: Determine if your plan allows for after-tax contributions and in-service distributions or in-plan Roth conversions.
2. Calculate Your Contributions: Ensure you are maximizing your Roth and after-tax contributions within the allowed limits.
3. Consult a Professional: Work with a qualified financial advisor and tax professional to implement these strategies correctly and avoid any pitfalls.

Action Steps

1. Review Your Retirement Accounts: Look at your current 401(k) and IRA accounts and their contribution limits.
2. Consult Your HR Department: Confirm if your employer offers the required options for the Mega Backdoor Roth strategy.
3. Schedule a Meeting: Book a session with a financial advisor to explore these strategies further and tailor them to your situation.

Thanks for tuning in, and happy saving!

Best regards,

Adam Olson Host, Money Mastery Unleashed Podcast Certified Financial Planner, Mutual of Omaha

Investing involves risk, including loss of principal.??

?Be sure to understand the benefits and limitations of your available options and consider all factors prior to making any financial decisions.? Any strategies discussed may not be suitable for everyone.?

Securities and advisory services offered through Mutual of Omaha Investor Services, Inc. Member FINRA/SIPC.? Adam Olson, Representative.? Mutual of Omaha Investor Services is not affiliated with any entity listed herein.?

This podcast is for educational purposes only and may include references to concepts that have legal and/or tax implications. Mutual of Omaha Investor Services and its representatives do not offer legal or tax advice. The information presented is subject to change without notice and is not intended as an offer or solicitation with respect to the purchase or sale of any security or insurance product.

Mutual of Omaha Investor Services and its various affiliates do not endorse or adopt comments posted by third parties.? Comments posted by third parties are their own and may not be representative or indicative of other's opinions, views, and experiences.