Some of the smartest tax planners in America aren’t accountants—they’re oil rig workers. These guys called us saying, “We’re making great money, but our company only lets us put in around $20K plus a small match. There HAS to be a way to save more.”
And they found one. It’s called the after-tax 401(k) contribution—the secret pathway to the mega backdoor Roth.
Here’s what they did:
1. They told HR to send extra after-tax money from their paycheck directly into the 401(k). No write-off.
2. HR thought they were crazy—“Why would you contribute money without a deduction?”
3. But these workers knew the trick: the next day, they convert that after-tax contribution to a Roth.
4. Since they already paid tax on the money through payroll, the conversion is tax-free.
5. Add in their salary deferral and employer match, and suddenly they’re dropping up to $70,000 per year into a Roth bucket.
No loopholes. No funny business. Completely IRS-approved.
Just smart strategy and knowing the rules better than HR.
This is how wealth is built: understanding the tools the tax code already gives you—and using them.
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