My new job's 401(k) plan allows for the mega backdoor Roth IRA. I am pretty confused by the strategy. Namely, can someone please explain --

1.) Why would someone do this? My HH income is well into the 32% bracket and my spouse and I max our 401(k)s, backdoor IRAs, HSA, 529 for the state deduction, have an emergency fund, rest in brokerage

2.) Assuming it's worth it, how would I practically do this? I'm assuming this is more involved than just keeping the paycheck contribution on.

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1. No capital gains in Rotk 401k vs brokerage

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Depends who it’s through. For mine with Fidelity, it was just a phone call and it is through payroll contribution. Took maybe 10 minutes.

Suggest giving your provider a call and asking.

Yeah, mine's fidelity. Good I can just call. Might do this next week.

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The benefit is that you can contribute up to $72k to your Roth 401k instead of $23.5k

Kind of - you need to subtract the employer match.

My corporate finance jobs won’t pay you enough to do the 72k a year. I led you make 400k plus a year.

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