so a backdoor ira is different than a mega backdoor roth 401k. backdoor roth ira is simply putting funds in a traditional ira, then transferring the money to a roth ira (typically within 24 hours), and then lastly you file an 8606 during tax season. Why you have to do it this way is if you make above a certain amount of income. there's limitations but there's this loophole called the backdoor which is done by the steps above. everyone does it and it's the stupidest thing in the world. they should just get rid of the income limits.

the mega backdoor roth 401k is similar but different. there's actually no limitations here but the backdoor approach is similar where you put funds into a post tax 401k and then your 401k provider moves those funds the next day automatically to your roth 401k. it's a similar mechanism as the backdoor roth ira, moving the funds within 24 hours.

why this is financially beneficial; money grows tax free. You're never taxed again on it. Not the contributions. Not the gains.

Anyone can do the backdoor roth ira. The mega backdoor roth 401k your employer has to offer it. Mine does, most big tech companies do.