A mega backdoor Roth IRA is just a strategy that people use to contribute to their Roth IRA or Roth 401(k), on top of the regular contribution limits. Meaning it doesn’t matter if you meet the income thresholds or not. If you have a 401(k) plan from your employer, you can still contribute to your Roth IRA using this strategy.
The flowchart should help determine if you can contribute.
TL;DR
You make a non-deductible contribution to your Traditional IRA and then you convert your contribution to a Roth IRA. Meaning this contribution will need to be made with after-tax money (remember for it to live in a Roth IRA it needs to have been taxed previously) so we cannot use this contribution to a Traditional IRA to reduce your taxes. But this is the way to contribute to your Roth IRA after you’ve surpassed the income limits. Prepare to pay taxes on the gains in your Traditional if the money had been sitting there for a while. To avoid this kind of scenario, deposit and request to transfer same-day.
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