Backdoor Roth vs Mega Backdoor Roth for Nurses: Which Strategy Fits?

If you're a CRNA or nurse practitioner earning over the Roth IRA income limits, you're locked out of one of the best retirement accounts available. But there's a legal workaround. In this episode, Brett Fellows explains two powerful tax strategies that can save you hundreds of thousands of dollars over your career.

In this episode, Brett covers:

• How the backdoor Roth IRA works and why it's been IRS-approved since 2010
• The exact step-by-step process to execute a backdoor Roth conversion
• What the pro-rata rule is and how to avoid the biggest mistake that trips people up
• How the mega backdoor Roth lets you contribute up to $72,000 annually to tax-free accounts
• Whether your employer plan allows mega backdoor Roth contributions (and what to ask HR)
• Real-world examples showing how nurses can accumulate $4.5 million tax-free
• Common mistakes to avoid when executing these strategies
• Tax reporting requirements and which forms you need to file
• How self-employed CRNAs can maximize these strategies with a solo 401(k)

Whether you're just starting out or nearing retirement, these strategies can help you build millions in tax-free savings and potentially save over $1 million in taxes throughout your career.

Key Timestamps:

(0:45) Why "High-Earners" Are Locked Out of Roth IRAs

(2:54) The Backdoor Roth IRA: A Simple 2-Step Process

(4:54) The Pro-Rata Rule: Avoiding the #1 Backdoor Mistake

(7:09) Step-by-Step: How to Execute a Clean Backdoor Conversion

(8:59) What is a Mega Backdoor Roth?

(11:49) Two Must-Have Features Your 401(k) Plan Needs

(15:44) Common Mistakes: From Missing Conversions to Paperwork Messes

(17:49) The $43,000 Strategy: Can You Do Both?

(21:19) Case Study: Saving $1 Million in Taxes Over a Career

(24:49) What to Do if Your Plan Doesn't Allow the "Mega" Strategy

#CRNA #TaxStrategies #RothIRA #Nurse

For more information and resources related to this episode, please visit the show notes.