I recently moved to a firm that offers a mega backdoor 401k from one that offers a transitional 401k. I already maximum the $24.5k limit due to the bonus at the beginning of the year at my old firm. Do I still have the full 75k for the mega backdoor? Both accounts are associated with Fidelity. My research leads me to think the answer is yes, as the 75k is per employer. But the Fidelity guy told me the 75k includes the 24.5k limit which left 47.5k this year for the after-tax.

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Yes it’s inclusive of the regular limit

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Ah, financial advice from chat GPT … 401k limits have nothing to do with your employer. Regardless of if you switched firm or what your other firm did, the standard practically every firm allows is $24,500. Some firms allow for the mega backdoor which allows you to contribute an additional $47,500 in after tax contributions for a total of $72,000 in contributions.

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Advice here is mostly incorrect if you change jobs mid-year. You can contribute up to the $72k max in the 2nd plan, if they’re solely non-Roth after-tax contributions. The annual 415(c) limit is measured on a controlled group basis, and doesn’t capture prior contributions to unrelated employers’ plans (like the 402(g) limit does, for deferrals). But keep in mind your 2nd employer’s plan will have a limit (% of compensation-based or potentially a dollar limit) on the after-tax contributions you can make in a given year. There might also be a plan-specific dollar limit on the in-plan Roth rollover amount you can convert annually.

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Thank you! This aligns with my (AI) research😁

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Definitely some people giving bad advice here. The $24.5k limit for voluntary, pre-tax employee contributions is your total, across all plans in a year. The higher limit ($72k) is per employer, as long as they're unrelated employers (more in-depth explanation of what this means is in the IRS regs).

There's a good explainer on the Whitecoatinvestor Reddit.

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Thank you!

Are they wrong in the change of employer scenario? Has anyone had any experience with this?

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