I started a Backdoor Roth Strategy last year but did not know about the Mega Roth Strategy.  Am currently working with my planner to implement via a third party.  I decided to prompt ChatGPT to get some background. Turns out this strategy has been in use since 2014.  Has anyone had any experience with it?  Any tips that ChatGPT may have missed (see below).  TIAUrvin - how about a Community on "Investing & Tax Strategies for Nest Eggs"My prompt to ChatGPT: Mega Roth strategy for financial investing and tax managementThe Mega Backdoor Roth (often called the “Mega Roth strategy”) is a high-income tax-management and investing strategy that allows you to move tens of thousands of dollars per year into Roth tax-free space, well beyond the normal Roth IRA limits. Below is a clear, practical breakdown, including who it’s for, how it works, limits, risks, and planning considerations. 1. What the Mega Backdoor Roth Is (in plain English) It’s a strategy that uses after-tax contributions to an employer 401(k) and then converts those contributions to Roth—either: • Inside the plan (Roth 401(k) conversion), or • By rolling them out to a Roth IRA Once converted, future growth and withdrawals are tax-free. 2. Why People Use It Major advantages: ✔ Bypass Roth IRA income limits ✔ Create very large tax-free retirement balances ✔ Reduce future Required Minimum Distributions (RMDs) ✔ Powerful estate-planning tool ✔ Hedge against future tax rate increases This is most valuable for: • High earners • Business owners • Professionals late in career • Those already maxing all other tax-advantaged accounts 3. 2025 Contribution Limits (Key Numbers) Total 401(k) limit (employee + employer + after-tax): $69,000 ($76,500 if age 50+ with catch-up) Employee elective deferral: • $23,000 (pre-tax or Roth) • $30,500 if age 50+ Employer match/profit sharing: • Varies by plan After-tax space available for Mega Roth:$69,000– employee deferral– employer contributions= maximum after-tax contributionExample: • Employee deferral: $23,000 • Employer match: $10,000 • After-tax allowed: $36,000 → convertible to Roth 4. Step-by-Step: How the Strategy Works Step 1 — Confirm your 401(k) allows: ✔ After-tax (non-Roth) contributions ✔ In-service Roth conversions OR in-service rollovers (This is the biggest gating factor) Step 2 — Max standard contributions • Max pre-tax or Roth 401(k) • Capture full employer match Step 3 — Contribute after-tax dollars • These are not deductible • They grow tax-deferred briefly Step 4 — Convert ASAP • Convert to Roth 401(k) or Roth IRA • Minimize taxable earnings 5. Tax Treatment (Critical) After-tax contributions: ✔ Already taxed ✔ Convert tax-free Earnings before conversion: ✖ Taxable as ordinary income ✔ Minimal if converted frequently Best practice: 👉 Convert each pay period or monthly 6. Roth 401(k) vs Roth IRA Conversion FeatureRoth 401(k)Roth IRARMDsYes (can roll later)NoInvestment flexibilityLimitedUnlimitedCreditor protectionStrongState-dependentEarly accessMore restrictedMore flexible Common strategy: Convert to Roth 401(k) → Roll to Roth IRA at retirement 7. Common Pitfalls (Very Important) 🚫 Plan doesn’t allow after-tax contributions 🚫 No in-service conversions 🚫 Waiting too long to convert (tax drag) 🚫 Mixing after-tax with pre-tax in rollover 🚫 Employer limits after-tax to small % 8. Mega Roth vs Backdoor Roth IRA StrategyAnnual Roth CapacityBackdoor Roth IRA$7,000Mega Backdoor Roth$30k–$50k+ If eligible, Mega Backdoor Roth dwarfs all other Roth strategies. 9. Who Should Use It (Ideal Profile) ✔ Income above Roth IRA limits ✔ Maxing 401(k), HSA, and IRAs ✔ Stable high cash flow ✔ Long investment horizon ✔ Expects higher future tax rates 10. Advanced Planning Considerations Combine with: • HSA maxing (triple tax advantage) • Defined Benefit or Cash Balance plans • Tax-loss harvesting in taxable accounts • Roth conversions in low-income years Estate planning: • Roth IRAs pass tax-free • No lifetime RMDs • Powerful multi-generation asset 11. When NOT to Use It ✖ You need near-term liquidity ✖ High-interest debt remains ✖ Expect dramatically lower tax bracket in retirement ✖ Employer plan fees are excessive 12. Quick Eligibility Checklist ☐ Employer plan allows after-tax contributions ☐ In-service Roth conversions or rollovers allowed ☐ Cash flow supports large contributions ☐ Long-term horizon If all are “yes” → this is one of the strongest tax strategies available

The Big 3A quick look at the top stories we’re following this week.AI stocks stumble into Monday. Oracle, Broadcom and Microsoft extend on last week’s losses as investors back away from big tech in the last trading week of the year. Tesla surges on Musk’s Monday announcement. News that the EV maker is currently testing driverless robotaxis pushed Tesla’s stock to its highest price in nearly a year.Delayed data points set to post this week. November job numbers come out on Tuesday; an inflation reading on Thursday; and an update on October’s retail sales figures TBS.This week’s Company Earnings Announcements at a glanceLennar Corporation (LEN)--Tuesday, 12/16Micron Technology, Inc. (MU)--Wednesday, 12/17General Mills, Inc. (GIS)--Wednesday, 12/17Accenture plc (ACN)--Thursday, 12/18NIKE, Inc. (NKE)--Thursday, 12/18FedEx Corporation (FDX)--Thursday, 12/18Paychex, Inc. (PAYX)--Friday, 12/19

‘Tis the season of giving, and the Fed is clearly in the holiday spirit. On Wednesday, the Central Bank gifted us a quarter-point interest rate cut. The cut was widely expected, and marks the third 25 basis point cut of 2025. Markets surged to recent highs following the midweek announcement, though they were down Friday going into close. According to some analysts, this surge can only mean one thing: To some, Wednesday’s market performance raised the prospects of Wall Street’s favorite Christmas tradition – the Santa Clause Rally. The Santa Clause Rally is pretty much what you’d expect. In roughly 80% of years on record, the S&P 500 trends higher on the last 5 trading days of the year and the first two trading days in January – generally driven by holiday spirit, retail spending, tons of sugar, and of course, year-end corporate earnings reports. But Santa’s sleigh will have to navigate some pretty strong headwinds to sustain our three-year market rally. These winds include continued uncertainty around inflation, a weakening labor market, a massive U.S. deficit, higher long-term borrowing costs for households, and the specter of another government shutdown in January. There is reason to wonder if this is all just a bit too heavy even for Santa. President Trump was asked during a recent Politico interview to grade the U.S. economy under his watch. He awarded it an “A+++++.”Of course, that grade depends on a lot of things. For instance…Fed Chair Jerome Powell was a bit more measured in his assessment. In his remarks following Wednesday’s meetings, Powell observed that the Fed remains in a challenging position as it attempts to fulfill its dual mandate.“There is no risk-free path for policy as we navigate this tension between our employment and inflation goals," Powell said.The Fed has largely been focused on blunting the impact of tariffs. As Powell notes, "Our obligation is to make sure that a one-time increase in the price level does not become an ongoing inflation problem.”“But,” said Powell, “with downside risks to employment having risen in recent months, the balance of risks has shifted." In the midst of this tension, Powell acknowledged that the Fed hears the American consumer’s concerns about affordability “loud and clear." But, he also had this to say: American wallets are strained under the weight of both everyday expenses and a housing supply shortage. The Fed doesn’t really have the tools in its kit to fix either of these things.  Of course, we won’t let this get in the way of our holiday spirit. Alternatively, we can cram down any economic anxiety for a few more weeks, spend freely, and just enjoy the holiday season. Obviously, in the New Year, we will continue to reckon with the relationship between AI investment and recent growth in our markets. The jury is still out in the case of Boom v. Bubble. But… Until then, we recommend vigilance. And Urvin has an awesome new way for you to stay on top of things. Let’s call it an early holiday gift. Download our brand new, totally mobile, AI-powered AskUrvin app and get up-to-the-minute, on-demand market insights. For instance, if you were curious why Big Tech suddenly spiraled on Thursday, you could Ask Urvin “What’s up with the Oracle stock right now?”Here’s what it told us: Got follow-up questions? Any other stocks, tokens, or funds you wanna ask about? Go ahead…push the button!