Overview

This program will address a new popular transaction allowing for oversize transfers to a Roth account. It is based on the maximum contribution to defined contribution plans in accordance with IRC §415 which provides a maximum contribution for 2026 of $72,000 plus a catch-up contribution in a 401(k) plan of $8,000. We will address the plan provisions that must be in place to take advantage of this transaction and the process to establish the MEGA Roth. In addition, we will consider any compliance rules related to non-discrimination that must be followed.

The webinar will include examples of different plan employee profiles that are most likely to be able to establish and fund a MEGA Roth account. In a related issue we will review the new catch-up rule set forth in the SECURE 2.0 Act requiring those contributions to be after tax Roth deposits in some cases and higher limits for specific ages.

Why should you Attend

Knowledge of a very effective planning device to create a very large Roth account in excess of Roth IRAs or Designated Roth Accounts in a 401(k) Plan.

Areas Covered in the Session

• Understanding the concept of a MEGA Backdoor Roth and how it differs from traditional Roth strategies
• Overview of SECURE 2.0 Act and its impact on Roth contributions
• Contribution limits under IRC §415 and how to maximize annual additions
• Role of after-tax contributions in creating a MEGA Roth opportunity
• Required 401(k) plan provisions to enable MEGA Backdoor Roth transactions
• Step-by-step process to establish and fund a MEGA Roth account
• In-plan Roth conversions vs. in-service distributions to Roth IRAs
• Non-discrimination testing rules and compliance considerations
• Identifying ideal employee profiles who can benefit most from this strategy
• Impact of new catch-up contribution rules and Roth requirements for higher earners

Who Will Benefit

• After attending the webinar Participants will be able to advise their clients on how to establish a MEGA Roth including plan provisions that must be in place, funding limits and non-discrimination testing
• In addition, they will be able to alert clients to the change in the catch-up rules and what is required to comply with those rules

Speaker Profile