you’ll occasionally hear talk of a “mega backdoor Roth IRA.

One final note: you’ll occasionally hear talk of a “mega backdoor Roth IRA.” This is a similar tactic that’s perfect for people who want to save enormous amounts of money in a Roth IRA, far above the $5,500 a year limit. However, it requires you to have a 401(k) plan at work that allows you to make non-Roth after-tax contributions – meaning that you can take money from your checking account (or straight from your paycheck after taxes are deducted) and contribute it into your 401(k) plan. Not all plans do this; in fact, many do not. If your plan does allow this, you can make up to $36,000 per year in those kinds of contributions to your 401(k) and then convert all of that money straight into a Roth IRA. Of course, this is all after-tax money, meaning you’ve already paid income taxes on it this year.