My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Build $30M+ tax-free retirement account through legal Roth IRA contribution loopholes
High-income earners with 401k plans that allow after-tax contributions and in-service withdrawals
30-40 years from age 21-30 to retirementWhat Success Looks Like
Accumulate $30M+ in tax-free Roth IRA by retirement age, paying zero taxes on withdrawals
Steps to Execute
Start regular Roth IRA contributions ($7k/year) by age 21
At age 30, begin mega backdoor Roth via 401k ($70k/year)
Make after-tax 401k contributions up to IRS limit
Execute in-service withdrawals to roll to Roth IRA
Invest proceeds in broad market index funds
Continue annual contributions consistently for 30+ years
Let compound growth accumulate tax-free
Checklist
Inputs Needed
- 401k plan with mega backdoor capability
- Consistent high income to support $77k annual contributions
- Long time horizon (30+ years)
- Basic understanding of IRS limits and rules
Outputs
- $30M+ tax-free account value at retirement
- Zero tax liability on withdrawals after 59.5
- Estate planning benefits for heirs
Example
“Software engineer starts at 25 with $7k Roth contributions, adds $70k mega backdoor at 30. After 35 years of S&P 500 returns, account worth $30M+ with zero future tax liability.”
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