Core Insights - The article discusses the Mega Backdoor Roth strategy, which allows high-income earners to significantly increase their tax-free retirement savings beyond standard Roth IRA contribution limits [3][8]. Summary by Sections Roth IRA Basics - Roth IRAs enable after-tax contributions that grow tax-deferred, allowing tax-free withdrawals after age 59½ and a 5-year holding period [5]. - Contribution limits for Roth IRAs are subject to income restrictions, which can limit high-income earners [5]. Backdoor Roth IRA - The Backdoor Roth IRA is a workaround for high-income earners to contribute to a Roth IRA by first contributing to an After-tax IRA and then converting it [6]. Mega Backdoor Roth Strategy - The Mega Backdoor Roth allows individuals to transfer After-tax 401(k) contributions into a Roth IRA or Roth 401(k), significantly increasing tax-free retirement savings [8]. - For 2025, the maximum contribution limit for the Mega Backdoor Roth is approximately $46,500 for individuals under 50, combining employee and employer contributions [10]. Implementation Considerations - To utilize the Mega Backdoor Roth, employers must offer an After-tax 401(k) and allow in-plan Roth conversions or rollovers to a Roth IRA [13]. - If the plan allows, after-tax contributions can be directed into a Roth 401(k) or rolled into a Roth IRA [14]. Tax Implications - Contributions that appreciate in value before conversion may incur taxes on the gains, making timely conversions advantageous [15]. Conclusion - The Mega Backdoor Roth serves as an additional strategy for those who have already maximized other retirement savings options, helping to accelerate retirement savings [16].