Backdoor Roth IRA + Mega backdoor Roth 401(k) in 2024?

[polaris8030]

Q; what is the maximum sum one can contribute to both backdoor Roth IRA and mega backdoor Roth 401(k) ? Here is what I see from online articles

For 2024
backdoor Roth IRA max = $7000 ($8000 if > 50 yrs)
backdoor Roth 401(k) max = $43,500

and these are independent limits, meaning the total that could be contributed towards (2 separate) accounts in 2024 = $50,500

thanks
-Patrick

[David Jay]

Welcome to your first post!

Your analysis is correct. There is no overall limit that covers both employer-sponsored plans and personal retirement accounts, each category has its own limit.

For clarity, the $7000/$8000 IRA limit is on the total annual contribution to all personal IRA plans (traditional, Roth). There is no limit on the second step of “backdoor Roth” process, conversion from traditional-to-Roth. For instance, one could make both a $7000 contribution for 2023 and a $7000 contribution for 2024 on April 15, 2024, then perform a Roth conversion of $14,002 a week or two later (the $2 in earned interest will be taxable income for 2024).

[midwest_bound]

Your numbers for mega backdoor are off. For 2024 you can mega backdoor up to the limit of $69k, minus standard pre-tax/roth contributions and employer match. So in your example it would be 69k - 23k = 46k limit. Mega backdoor is also eligible for catch up contributions of $7,000 if over 50. Also, the mega backdoor option is per employer, so technically speaking you could do additional $69,000 contributions to multiple employer plans.

[retiredjg]

and these are independent limits, meaning the total that could be contributed towards (2 separate) accounts in 2024 = $50,500

The limits are independent.

There is no actual limit for mega-backdoor Roth (other than $69k per plan). There could be limits imposed by the plan or the number of plans you have.

Welcome to the forum.