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Level 1
posted Mar 5, 2025 9:10:21 AM

Mega Roth

Can someone walk me through a Mega Roth and what does it mean for my taxes?

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1 Replies
Employee Tax Expert
Mar 5, 2025 9:59:13 AM

The Mega Roth is when you maximize the after-tax contribution to your 401(k) at work then convert the funds to a Roth.  You then roll over or convert this amount to a Roth IRA or Roth 401k. Unlike with a normal Roth IRA conversion, the principal will not be taxable. However, the earnings portion of the rollover will be considered pre-tax and subject to taxation at the time of conversion.