Do you make post tax contribution to your 401k account? In addition do you also do backdoor IRA. What are the limits?

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I make a 1% after tax contribution. A tiny amount but I’m a voracious spender so it’s easy to put away just a smidgen more and it makes me feel better about myself lol

I do backdoor IRA of 6k
Meet the max of pre-tax 401k which is 19.5k for 2021 I believe
Also do megabackdoor in-plan Roth conversion of after tax 401k of 500 per pay check

Not at D anymore - D doesn’t do megabackdoor. Check with your employer if they allow..

Do backdoor IRA first of $6k. Mega backdoor amount for 2022 is $61k (overall limit)-20.5k (individual pre-tax contribution limit)-employer contribution. Max of $40.5k but realistically less if you have an employer match.

Thanks

Use the after tax 401k to do backdoor Roth. Effectively it just allows you to contribute more Roth beyond the regular 401k and IRA limits.

I max out my 401k and use Roth in plan conversion. That is 19.5k for 2021. This gets me 6% IBM match, which again I convert to Roth.

Then I do post tax contribution, IBM allows up to 10%, but I be careful here not to max out employee-employer limit. Then I convert this also to Roth. I think this is called mega back door Roth. Not every employer supports this, but IBM does.

Lastly I do save 6k in each of my and my wife’s IRA using backdoor Roth.

You can tell I am a big fan of Roth. Also make sure to invest properly. I use a mix of low cost large, mid, small and international growth index funds. My plan is to become more conservative as I become older. But for now growth stocks are preferred for me.

Thanks

Does mega backdoor of 61.5 include backdoor IRA of 6K. Or you can do 61.5 K + 6K ?

Thanks

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