this video is going to change your life it is so scary for millions of Americans that wonder if they're going to have a retirement or how to build for retirement let alone the taxes it's going to take to pay along the way or when we get there the answer Roth IRA in this model I'm going to show you it's called the mega backdoor Roth in seven or six to seven years you can have over a million taxfree legit now my name is is Mark ker I'm a CPA attorney bestselling author podcaster radio show host uh YouTube I'm here cuz I love freaking Main Street I love making money I love saving money and I hate paying taxes people there is a method to this you're going to love this I want you to share this video with your friends your family anyone you care about that needs to Kickstart their retirement I don't care if you're 30 years old 40 50 60 this method works now we're going to do an underage 50 model and a 50 and older model and I'm going to show you how this year if if you do it for approximately 7even years six and if you're fifth year older we can pull it off in 6 years if you're underage 50 in 7 years you can have a million dollar taxfree and a Roth IRA it's called the mega back door rth okay so let's dispel some of the myths the lies the misinformation the confusion out there and if you have any questions please post them down in the chat my team's going to put them there in chat I want to make sure I've got that open so that you guys can uh give me some uh type in those questions uh from the different platforms welcome on Facebook YouTube Entrepreneur magazine glad to be here with you we're going to we're going to rock this so please write your questions in there uh in the chat do not look at any posts from me I am not posting they're Bots don't listen to anybody in the chat that's trying to pitch you on a deal or whatever Focus here put your comments down in [Music] chat here we go go now the first myth out there is that I can't have a Roth IRA cuz I make too much money wrong bull crap if your account has told you that you have the wrong account I it's malpractice it's literally crazy that an account would say you make too much money you can't put money into a Roth in fact we better mention what the back door is here first so I'm going to go there before we even get to our bubbles or our our cylinder here of wealth okay so if you want to here's the party the party is the Roth party the reason why we love the Roth and some of you that are just getting started investing may be what's the big deal about a Roth IRA well you take your after tax money money you've already paid tax on and you pop it into the WTH it's an investment account that you control you can invest in real estate notes crypto gold silver small business your brother's landscaping business your sister's cupcake store you can invest your Roth however the hell you want you are not captive under Wall Street you can invest funds you're sure but you want to get 10 15 20% rates of return you're going to invest what's called all assets well this Roth IRA this party is awesome because as you invest with your money in your Roth you pay no tax and then when the money comes out you pay no tax now the Congress in America was freaking out last summer when they found out that Peter teal owner of PayPal and Facebook investor in PayPal and Facebook uh has over $6 billion dollar in his Roth IRA well he started out with a Roth the same size as yours was mine he just invested in startups and Venture Capital 20 years ago with his Roth IRA and now it's worth billions tax-free we have clients over and over again in our office with six seven and eight digit Roth IRAs because they started investing five 10 or 15 years ago that's what I'm talking about that's what I want to show you how to do so we're going to have this Roth IRA account now directed Ira I'll send you to the Trust Company if you want to open open up a Roth IRA you can do it for tonight for less than three 400 bucks to open an account and start putting money into it I just want to let you know how easy it is you can start a Roth IRA on your freaking phone tonight and start investing it in the weeks to come but we want to be in this party because we want taxfree growth and taxfree withdrawals well Congress right now says if you make more than what's our limit right now this is the the rule on the face of it that if you want to go in the front door and you want to put money into a WTH if you make more than 153 Grand in your single or 228 Grand you can't go in the front door I can't I I want to get in here I want to go to the party but I can't get into the party if I make more than 183 or 250 that it's just that's the front door rule but people there is a back door there's a back door way into the party so what you do to get in the back door is if you make too much money step one you make a nedu able contribution to a regular Ira it's kind of like putting money in your 401k at work which is going to be part of this equation in the mega backdoor strategy so I'm going to make a non-deductible contribution now who in the world would make a non-deductible contribution to an IRA because it gross tax deferred but I got to pay tax on the way out that would make no sense no one would do that but once you make this non-deductible contribution on A2 you convert to Roth you can convert to Roth and anybody at any income level can convert to Roth so if I put five grand in a traditional get no ride off but on day two I convert to Roth I don't have to pay tax when I convert to Roth because I didn't get a tax deduction when I put the money in it's just a two-step process we literally have forms that uh that you check the box I want to do the back door Roth it is that common it is that legit it's been around forever and any accountant that tells you you can't have a Roth and they don't know about the back door you got to reevaluate who you're working with now if you're an accountant enrolled agent CPA and you're like uh I didn't know about this this is kind of cool Google it I'm not out in right field and if you don't know this strategy you've got to check out my certification program I'm certifying CPAs and enrolled agents with 70 plus strategies 12 modules weekly trainings helping client accountants around the country convert their practice to advisory so just as a side if you're accounting professional get to Mark jer.com and check it out hundreds of CPAs and enrolled agents are getting better clients through my network I take no money out of that Network it's they're your clients and I'm sending them your way I need better accountants and enrolled agents America America needs better enrolled agents and accountants and and this is in CPAs and this is this is one of the 70 strategies all right so everybody rule number one you can all have a freaking Roth IR I can have a million dollars in an old 401k and convert it to Roth tomorrow I could be making a million dollars a year and I can still do a backd door Roth so do not worry about income level second myth well I'm too young or too old nope you can have a Roth IRA at any freaking age my kids were working for me in my small business at age five they were picking up Nails around the L the the rental properties they were shredding paper in the home office and I could pay them $1,000 $3,000 $4,000 a year as they got older they get paid more kids as old as one year old can have a Roth IRA all they need is earned income people that are 90 years old can open up a Roth IRA which I endorse and love because guess what when your family inherits that WTH they can immediately take distributions and do not have to wait till they're 59 and a half so they get 10 years to drain that WTH I've help my mom put money into her WTH so I can be the beneficiary of it she's like well I don't need a Roth that's okay I'll put the money in for you you invest it and then we all are going to die we talk about that in our family it's not the end of the world when my mom dies I'm going to inherit that Roth taxfree and I can take 10 years to drain it and I don't have to be 59 to do it so whether you're 90 or one years old no matter what your income level is you can have a freaking WTH Baseline okay now we want to get as much money into the Roth as we can so we're going to talk about the mega back door or because it we're going to go through this to get it in there we're going to get creative and this is so legit and common it's not high risk at all you just got to have the right team to work with that gets it okay so if I'm under age 50 here's the first piece of this you got to do your basic WTH I want you to do your Roth contribution and this year in 2023 you can do 6,500 so that's the first part of the bucket you're going to put in 6500 and you're going to do that through a basic Roth IRA you can open one up tonight and put $66,500 in it all you have to have is earned income done go boom bang now I've got other strategies on well Mark all I have is rental income how do I do this I call that the side door 401K where we're going to create a management fee out of your rental properties but that's a whole other strategy so you can learn about that in my trainings or on my blog or on my podcast Street business podcast so first level is the 6500 now the way to get to the mega backdoor Roth is you've got to have that small business now this could be a side hustle it could be a rental property business where you're going to push money around the out the side but let me show you what this looks like now this is the trifecta that I've taught multiple multiple times many of you get this so here's your trifecta this is your 1040 this is your revocable living trust and if you have a side business it could be an LLC or an es Corp you're going to set up a solo 401K now for those of you that have a day job you can still do the mega backd door Roth I'm going to come to that option here in a moment so for those of you that do not have a small business um there is a way to get there for those of you that have a small business with no employees it gets better so we it's a little faster so we can do this solo 401k and we're going to make contributions over here you're also doing your Roth individually so you're down here this is you okay you're going to be contributing to your WTH personally but contributing to that to that solo 401K through your business now this is known as the trifecta I teach on this constantly to we want to put our assets over here and our Ops over here if you need to beet with one of my tax lawyers it's simple it's affordable there's no Mastermind five or 10 or $20,000 fee to work with a tax laer in my office we can build a trifectant look at your tax plan for under two grand and get you set up with a plan that saves you 10 times whatever the hell you pay us so this is the structure we're going for we want to build this bucket that's the backdoor Roth we want to build it through the Roth of the 401K now for those of you that have a day job you're gonna and so here's your W2 and you have a day job now by the way you can have both you can have a day job and a small business 401K you got two 401ks it's not problem so what you would do is do your contribution in the 401K here and then a non well the term that we want to use is an after tax employee contribution I'll come to that in a moment people but we're going to be able to contribute to our 401K at work after the company match so we're gonna we're going to talk about that but we got our solo and our 401K now I know this is a lot to digest in a live YouTube Facebook presentation this is why you may want to consult with one of the tax lawers we can can build this for you and if you're trying to make a million dollars you can afford you know a few hours with an attorney to build a plan for you because we want a relationship for many years to come we're not there to take advantage okay so this is where we're headed so the first step is we want to get this 6,500 in there now the next piece is your 401k contribution now this year now those of you that are 50 and older I'm going to do the same thing for you in just a moment so underage 50 we're going to take 22,500 now the maximum you can do in a 41k situation is 66 so that's the 401K this year is 66,000 so we want to get that entire 66 Grand so this remaining part is the 43,500 that gets us our 66 which plus our 6500 and people we are at [Music] 72,500 that's how much you can put into a Roth this year yeah yes middle- income America whatever you just have to be able to generate $72,000 through your day job your small business your big business whatever you got going on let's sell piece of crap equipment we don't need around the house maybe I don't need that boat or that RV I need a retirement I'm going to build it I'm going to go for it now the the beauty of this is you're stacking you're stacking your regular WTH this employee contribution and if you're a small business owner this is going to be the company contribution so in a Solo you're using company contribution with the employee contribution e stands for employee so company contribution employee contribution if you work for another company let's you you work it's not your small business you have a 401k at work you're going to do your employee contribution but then up here you're going to have the company match so whatever the company matches could be three grand five grand 10 grand I don't know whatever your company matches whatever's left that is called the after tax employee contribution now this is very common your employer is not going to tell you about it you have to ask for it and let me just tell you a quick story of how we learned about this ourselves at our Law Firm I didn't even know about this six years ago we had some clients that were oil and gas workers up in South Dakota making money living in trailers the trailers were paid for their food was paid for they're working on these oil and gas rigs they're making 150 Grand a year and these guys are like what do I do with my money I got to save it and I don't know where they found out and they came to us and said we can do this we figured this out they did their 22,500 the company did a match and they went to their employer said can I do an after tax contribution and they're like yeah you don't get a write-off for it because you've already got your 225 we already did your match but you could put it in there an after tax contribution you don't get a write- off and they said that's okay I'm going to convert it to Roth on day two so that's the second step you're going to do your employee contribution as a Roth contribution get the match in any deferral from the company if you're a solo or the company after tax employee contribution and then on day two you convert to Roth now you've got your entire bucket 72,500 all Roth now here's the amazing part I did some math before we got on here if you can do this right now and six more times so if you could do it this year and six more times if you can get a 15% return you're going to have one million doll in seven years a million dollars taxfree now a 15% return I get hate mail for this people I'm going to tell you right now you're going to go Mark you can't get 15% return the best you can get in an ETF or a mutual fund you know S&P 500 Index Fund 5% 8% this is heresy you're crazy you can't get 15% hear me out 80% of family offices those are people that have $10 million or more 80% of their portfolio is not in Wall Street rich people do not invest in Wall Street they invest in what's called alt assets they invest in real estate syndications they invest in small business they invest in real estate they invest in notes Wall Street will not tell you this it doesn't mean wall Street's bad it doesn't mean that I don't have a TDM trade money market account I've got money in Wall Street but I leave it there till I find something better and 15% 20% we have clients doing 20 to 25% in small business with their retirement accounts that's what you get to do at directed ira.com you can set up your own retirement account 401K set simple you know Roth and self-direct and then you're getting these rates of returns so I don't want any hate mail if you don't think you can do 15% go to my podcast the directed Ira podcast number one podcast on self-directing all right this is your under ag50 model now it's going to be really similar here then I'll answer questions out there but let's just do it for those that are 50 and over uh lots of fun that's me I'm over 50 now so fun okay so in this example we'll go back to our blue you're going to do this year in 2023 you can 7500 what now I can make up I can do the 66,000 but because I'm overage 50 I get an extra 7500 so I get to do 73,500 so I want to 73,500 I get to do that but I have to do it in two pieces again so I'm going to do my employee contribution so the employee contribution this year because I'm older is ,000 and then I get the same 43,500 here so my 43,500 I'm going to convert to Roth on day two if you have a day job you can walk into Microsoft and go I want to do my after tax employee contribution they'll go okay you're crazy yeah I'm crazy I want to put in 43,500 of my 401k okay and then you call up on day two and convert to Roth you just got 43,500 in Roth money and there's no tax to do it because you already paid the tax on your paycheck you just said put an extra 435 in then you got your 30 which you're going to do Roth and then your 7500 in your individual Roth so this is your Roth and this is all 401K now combined the beauty of this this blows people's mind $81,000 you can throw $81,000 into a Roth IRA now done the math if you can put 81,000 in this year and just do it five more times five more times commit to this for six freaking years you sell anything run your small business get efficient start get another job whatever it takes if I can do this six more times I will no I said five more times so you put your deposit in and five more times in six and a half years you will have a million dollar taxfree if you you get a 20% Roi it'll be less than six years so I'm going to be getting this to a million dollars as fastx free in my RO that's what we're shooting for people this is doable I we see clients do it all the time now I know some of you are like Mark I'm just trying to do my little WTH down here that's great do it you know what's fun is we we teach this principal too a 15-year-old you got kids that are 15 years old they put six grand in a Roth and you teach them to just put six grand in a Roth don't worry about rental properties don't worry about your day job someday is a 401k just get in that happen $66,000 a year invest it your child at age 55 will have $5 million taxfree just by putting $6,000 away a year for the next 40 years they'll have over $5 million sorry I should say that's 65 15 years old no no that's right 15 years old plus 40 years is age 55 you'll have over $5 million in Roth money taxfree and that's just putting away 6,000 a year the sooner you can start on this the better this Mega back door Roth holy crap if you could keep the the deposits going for more than six or seven years and you start putting three to four more years you're going to have2 to three million in 15 years that's how fast it multiplies so this is powerful it's real it's legit and I'm I'm just excited about sharing this and the mega back door broth really really works now I don't see any questions here unless my team's planning on hitting me with them I got a couple questions here okay can they hear you yes sir all right so uh we'll go ahead and start out found Treasures asks you have to convert all traditional IAS over first correct yes now in this example let's say you have over here a regular Roth IRA I mean a regular IRA now this is important found Treasures in order to do the backd door Roth just this piece I have to convert any old Ira I have to Roth first and I got to pay tax on it when I convert it so I call that chunking chunking at it year after year if you go to YouTube after this broadcast type Coler chunking Ira that I I show how you can chunk at that IRA and get it to a Roth position as fast as you can but guess what you can still do this you don't have to convert that this Ira to do the this piece so you can still do $73,500 this year and not convert this and do this piece so it's you can holy hell so start converting this Ira to Roth and pieces and chunks and do this part you're still there You're Still rocking just convert 7 3 I'm sorry convert 7500 a year and do this you're right back where you started if you can afford to convert 10 grand or 20 grand do it now we're really rocking now we got really a lot of traction so you can still do the 401K piece but to do the bottom piece you've got to convert your traditional IRA to Roth first all right next question awesome all right Julie asks does your escorp have to be paying you a W2 to contribute to your solo k um yeah now you may want to drop off Tristan as after you ask a question because if I go here they're only seeing half of me so it might be harder for them to see the screen also if you want to type any of these questions in chat or cut and paste that can be a quick as well all right so the question was if I want to contribute to a 401k in my small business do I have to have a W2 if you have an S corporation you have to have a W2 in order to fund the 401K if you just have an LLC with no W2 then that's fine but you're going to be paying self-employment tax out the butt so we don't like just a regular LLC that's generating this type of money there's another strategy you can find it on YouTube of mine and I we teach it to all of our certified advisers it's called The Sweet Spot 401K a lot of people are like Mark I I don't want to do the full Mega backo door Roth but I want to put away as much as I can how can I do that and not pay too much self-employment tax along the way the question being asked right now is do I have to do a W2 if I have an escorp well if you have an escorp you have to do a W2 anyway the question is how much W2 do you take and get the most bang for your buck so we literally have a sweet spot 401K because if you're not going for the Mega we'll only take a certain amount of 401 W2 and get the maximum 401k we have tables that my tax lawyers and our certified tax advisers can walk you through to find that and you're not paying thousands and thousands of dollars to get that advice make it appointment at KS lawyers.com is down in the description and when we're done with our console and give you a plan we'll hand you off to the tax Pro Network we've got over hundreds of certified tax advisers around the country that speak Mark Coler that have been certified and have to be training with me every week and I learn from them too in order to be a referral so we're going to make sure you get the right accounting next question Tristan all right we got one from Aaron he wants to know did build back better make any changes to backdoor Roth well yes and no um the build back better planed last year Joe Biden it did not hurt the roths they were trying to get the mega roths shut down you have to uh you can't put as much into a Roth none of that legislation was passed so Roth did not not get hurt at all in last year's legislation if anything the roths got better because in this scenario a company can now do you you can do your employee contribution in Roth the company match can now be in Roth so it saves an extra step um and that and it's pretty common um and so build back better made this easier so you don't have to do the second step of a conversion the after tax employee contribution you cannot do in a Roth because it has to be converted so it's just a two-step process you still get to Roth and there's no tax you just do your after tax employee contribution or if you're in a small business you do the company contribution and then you convert to Roth the next day and there's no tax to you personally uh next question all right we can end it on this one there's not a ton of relevant questions but we'll go ahead and get this one seems to be a generic question but it's getting asked a lot how can you roll over money from a current employer or see that fromen yeah and we got one from found Treasures too so so the next question is how can I roll over money from a current employer 401K all right if you are currently employed with a 401k your ability to self-direct that is going to be very limited you might have vested and the employer might allow you to take your contributions over the last how many years and roll them out to an IRA so you call your employer HR department and go can I roll out my vested contributions to an irra they might let you it's going to depend on the 401K agreement but here's an important point I calling all of you out there that have a day job 401K you're probably frustrated because you're like Mark I'm not going to get this 15% return because all this money in the 401K is stuck in my 401k at work so I'm only getting seven or eight% if I'm lucky after all their fees so let me teach you guys Colleen you're going to love this uh Treasures found Treasures I call it the match andout strategy you're still doing the mega backdoor Roth but you're trying to do it in a way where you control the investing as much as possible on day two so it's a you're going to use a combination of two 401ks to do this so now Colleen if you're like well I don't have a small business on the side get one the number one way to wealth is buying rental properties or a small business on the side and we can fund your 41k through either side talk to one of my tax holders so what we want to do this will look cool so here's your mega backd door rck all right well it's it's going to be a combination of two different 401ks you're going to have the day 401k and you're going to have the small business 401K but it's all part of the same equation so your W2 is up here and what you want to do is play in it only up to the match and then get out so let's do an example let's say the company does a 4,000 000 match they do 4% of your salary let's say your salary is 100 Grand and they say we'll put up to $4,000 in your 401k if you put in 4,000 so it's a match dollar for dooll up to the first 4,000 so what do you do you want to take advantage of that because you're doubling your money so you put in $4,000 so there's four and then the company's going to match the other four okay let's put that in blue so there's the company now of course we're at $88,000 now how much can you do this year now we're going to assume in this example you're underage 50 Colleen so you're underage 50 how much can you put away 72,500 so we want to get up to 72,500 well if you say well Mark I want to invest that money the way I want to and I've got a small business over here I'm going to do the remaining 66,500 here now some of you are gonna like well I don't have enough small business income so I'm going to do s 30,000 up here and 60 and the the other 36 down here so you have to then when you meet with the tax adviser we're going to help game it and find your perfect balance so if you say 72,5 500 is my Max I've already got my 4 in and my match that's I call it matching out and it's not that you get out entirely of the 41k what you're doing is matching and getting and stepping back and that's probably how I should call it match and back step back and go what am I going to do next so what I want to do next is the next piece of this is your personal Roth so you're going to do your personal Roth get the match that's step one and then step two you're going to do your individual Roth Now if you're under age 50 that's 6,500 all right so if we're doing our math here you've got your 72,500 you already did your 6500 and another eight so I'm going to just do the math here say have fun with this so I've got my 72,500 minus my 6500 minus my 8,000 so I'm at 58,000 so I got 58,000 more to put away now you have 22,500 minus the four you already used up four of that so I've got 18,500 I can put in I would put it in here so this would be the rest of your 18 because see remember everybody this year you can put in a maximum of 725 in a mega back door Roth a maximum of 66 can be 401K well of that 66 22,500 is your contribution everything else is company match or an after tax contribution I know this can be complicated I want you to watch this video and over and over again you'll get it so if I have 22,500 look at where it's coming from four here and 185 here there's my personal contribution so I've got my 65 my 225 now all that's left is the 435 so I could now the company you already put in four in this example so that's 395 so I would put it all in here cuz see if I have a small business in my escorp I'm going to do the 185 and the company match of 395 there this is going to come from my day job but see I'm getting there between my personal Roth so number one is the company match number two is my personal Roth number three is I'm doing everything else here and the reason why I want the rest of this money here is because you can self-direct that and invest it in what you know best go start a small business with It Go fund a small business you can't start your own can't work in it but you can fund a small business you can buy rental real estate you could buy look you know what's crazy I just had a phone call today 395 and 185 what is that let's do that 39,500 plus 18,500 I'm at 58,000 I've got real wealth I give a shout out to Rich vety over at real wealth they're a brokerage that are helping investors around the country in probably 20 different markets find rental property get to real wealth talk to uh look talk to Rich himself or one of his three advisers Aristotle talk to those guys and say hey I got $58,000 can you find me a rental property holy crap they've got rental properties in probably six to seven different markets that at that price point that's your down payment and you get a non-recourse loan from A bank and you're buying rental properties in your retirement account and you're getting a lot better than an 8% return people their cash on cash returns are 8% not to mention appreciation and mortgage paydown so that's just one example again of using this money more wisely than being stuck in a Wall Street product you're not excited about so the overall backdoor Roth is a combination of two 401ks in that situation Colleen so you're like well I want to roll this money over here you can't tell you quit your job you got to retire or quit or get fired then you can move this 401K over here but until then you got to use a combination of the two to get there well W exciting stuff people the dream is real you can make money capitalism is not bad having a side gig having a small business is your true path to wealth get out there and look for a rental property every year you can do this we're all in this together and I applaud you for watching this podcast and learning it got a little technical but I'm going to throw down I'm not going to hide the ball now you got to get a personal consult to tailor this to your plan your situation it can be affordable and simple as $1,500 under two grand to get a tax lawyer tailoring a plan to you and then we hand you a Tax Advisor in the network that you get to select from around the country young or old male or female small firm big firm CPA or enrolled agent tailor that CPA to you and you're Off to the Races building a plan that makes a difference please get engaged get involved get to my podcast at Main Street business podcast the directed Ira podcast Mark jer.com for all of you tax advisers I am in this if I don't get hit by a bus I'm G to be here every year for the next 10 years that's probably my game plan then I'm G to fall over and die I'm here with you please give us this five star share it like it and subscribe on the YouTube channel and every time I go live you'll get a ping thanks everyone keep living the dream