Roth IRA: Mega-backdoor and ordinary backdoor

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seed4great
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Roth IRA: Mega-backdoor and ordinary backdoor

Post by seed4great »

In 2019, Mega-backdoor Roth contribution is limited by $56K and ordinary backdoor Roth by $6K (or $7K after 50). The question is whether $6K is included into $56K or not? Sorry if it has been discussed already: somehow cannot find much info on this topic.
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FiveK
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Re: Roth IRA: Mega-backdoor and ordinary backdoor

Post by FiveK »

No, those limits are separate.
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seed4great
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Re: Roth IRA: Mega-backdoor and ordinary backdoor

Post by seed4great »

Thank you, that was my impression too.
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2cents2
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Re: Roth IRA: Mega-backdoor and ordinary backdoor

Post by 2cents2 »

seed4great wrote: Wed May 01, 2019 11:43 pm In 2019, Mega-backdoor Roth contribution is limited by $56K and ordinary backdoor Roth by $6K (or $7K after 50). The question is whether $6K is included into $56K or not? Sorry if it has been discussed already: somehow cannot find much info on this topic.
I thought I would add a couple more details. The 56k limit for your 401K would be comprised of your Roth (or traditional) contributions (19K max), your employer match and any additional after tax contributions your plan allows. Also, there is an additional 6k catch-up for those who are 50 and older.

As previously noted, the IRA contribution limits are separate.
triplebrie
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Re: Roth IRA: Mega-backdoor and ordinary backdoor

Post by triplebrie »

I thought I would add a couple more details. The 56k limit for your 401K would be comprised of your Roth (or traditional) contributions (19K max), your employer match and any additional after tax contributions your plan allows. Also, there is an additional 6k catch-up for those who are 50 and older.

As previously noted, the IRA contribution limits are separate.
To clarify one further time - Are you suggesting that someone younger than 50 years old would be able to hit the $56k limit through an employer AND do a backdoor of Roth $6k, for a total of $62k?
Last edited by triplebrie on Thu May 02, 2019 1:31 pm, edited 1 time in total.
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seed4great
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Re: Roth IRA: Mega-backdoor and ordinary backdoor

Post by seed4great »

2cents2 wrote: Thu May 02, 2019 11:15 am
seed4great wrote: Wed May 01, 2019 11:43 pm In 2019, Mega-backdoor Roth contribution is limited by $56K and ordinary backdoor Roth by $6K (or $7K after 50). The question is whether $6K is included into $56K or not? Sorry if it has been discussed already: somehow cannot find much info on this topic.
I thought I would add a couple more details. The 56k limit for your 401K would be comprised of your Roth (or traditional) contributions (19K max), your employer match and any additional after tax contributions your plan allows. Also, there is an additional 6k catch-up for those who are 50 and older.

As previously noted, the IRA contribution limits are separate.
Thank you so much: this is really helpful!
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Earl Lemongrab
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Re: Roth IRA: Mega-backdoor and ordinary backdoor

Post by Earl Lemongrab »

Catch-up also applies to 401(k) contributions ($6,000), so the total for age 50+ in 2019 is 62k.
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