Today, we're breaking down exactly how to set up a backdoor Roth and a mega backdoor Roth,

step by step, the mistakes to avoid, and how this strategy can accelerate your path to financial

independence. Let's get into it.

Hello, hello, hello, and welcome to the Bigger Pockets Money podcast.

My name is Mindy Jensen, and with me as always is my Hazaroth IRA co-host, Scott Trench.

Mindy, that was a great step one for introducing this podcast.

For step two, I'm going to lead us to a conversion into the actual content of today's show.

We are super excited to be talking about this topic today and are bringing on two experts and familiar faces in Amanda Hahn and Matt McFarland to help us discuss how you can be doing the backdoor Roth contribution and the mega backdoor Roth contribution the right way. So Amanda and Matt, welcome to the Bigger Pockets Money podcast. Welcome back. Can we jump into it and you tell us what

exactly a backdoor Roth is and who it's for? Yeah, well, thanks for having us, guys. It's good to be back. It's always good to talk to you guys. Yeah, I mean, mega backdoor, backdoor Roth. It's a great strategy for those high-income earners out there who are making too much money to directly contribute to a Roth, right? The IRS likes to put it in their Congress likes to put in rules and say,

hey, if you make too much money, you can't contribute to a raw, but this is

kind of that, we'll call it that workaround to let's you still get money into a tax-free environment

for your future wealth building. And what are those limits? IRS does not like to make things easy

for us, right? So they put limitations around who can actually contribute. What are the

income limits? Yeah, so for 2026 limits are still coming out, but for 2025, single person, if you made

over $165,000, you were kind of capped at not being able to contribute directly to a Roth. And then for a

married couple, if you made over $246,000, your ability to contribute to a Roth

was limited. So thus the people are looking at potentially utilizing the backdoor Roth for

sure. And just to preview this, the backdoor Roth and the mega backdoor Roth are kind of,

in my opinion, very silly loopholes. Like it's a very mechanical, very easy exercise

if your employer allows it to make a backdoor

and anybody can do the backdoor Roth.

It's kind of like, why do we have this limit

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