To me, non-Roth impact to heirs has somewhat lowered their relative value
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I consider it possible to have "too much" in your non-Roth account(s) relative to taxable assets. Until recently, a non-spouse could inherit retirement assets and withdraw over the beneficiary's projected life. Fantastic.
Now the person must withdraw all the money within ten years, which is a major difference. All taxable in non-Roth. Possibly at a terrible time for beneficiaries at peak income.
By contrast, taxable assets may get a stepped up basis and don't have to be withdrawn at all.
So, I have suggested to some people who are within a reasonable distance of retirement that they reconsider how much they put into a retirement account vs other options.
The new-ish Qualified Charitable Distribution is also very attractive as a potential way to donate money directly from an IRA (not 401k) without tapping taxable assets.
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Message Thread | This response ↓
 (Retirement Loot) - Mega Back Door Roth ... - shua November 21, 2025, 12:44:41
- always back door when you get the opportunity* - lcubed November 23, 2025, 12:45:00
- I’ll never see you if I had no loot* - PapaDels November 23, 2025, 8:04:26
- I don’t really understand why anyone would do a Roth rather than a pre-tax account - DT November 23, 2025, 6:50:08
- One reason is that contribution limits are the same conventional or roth 401k. - gvibes November 23, 2025, 10:37:04
- Roths don't have required yearly withdrawals by owner - Potomac November 23, 2025, 10:09:00
- I’m already maxing pre-tax. Just trying to figure out what to do with any extra* - shua November 23, 2025, 9:45:07
- A bit presumptuous to assume tax brackets remain static (depending on your horizon) - Dilbert November 23, 2025, 8:52:33
- correct.* - Ari Gold November 23, 2025, 12:09:13
- Rumor has it that Lindsay Graham is more interested in the MAGA Back Door* - ATL November 21, 2025, 18:19:58
- Most people that can Mega Back Door would get hit by the Pro Rata rule, which makes getting one bad* - Quiz November 21, 2025, 17:21:40
- I hate everything the mega backdoor Roth represents. Such an unnecessary, - longsnapper November 21, 2025, 16:42:02
- Is there any reason to switch to a Mega Back Door Roth vs putting money into 529? - Carl Spackler November 21, 2025, 16:09:21
- Or you can put all your money in QQQ an get that sweet, sweet 20% capital gains tax… - timmer November 21, 2025, 16:00:22
- mega back door roth is better than ira->roth conversions - illinibone November 21, 2025, 15:56:09
- skiddley biddley bop* - VIV November 21, 2025, 14:17:12
- To me, non-Roth impact to heirs has somewhat lowered their relative value - Potomac November 21, 2025, 14:01:57
- i'll use the roth for catch up contributions, but will not convert any of my traditonal as i want - Ari Gold November 21, 2025, 13:36:49
- Watch these guys - ATL November 21, 2025, 12:48:53
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on November 21, 2025, 14:01:57, in reply to "(Retirement Loot) - Mega Back Door Roth ..."