What is a MEGA Backdoor Roth Account?

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.