The Mega-Backdoor: Insane 401k Contributions

TL;DR: You may be able to contribute more to your retirement accounts. This is just to bring this to your attention – make sure you do your own research.

Your maximum contribution to 401k accounts is $19,500 this year right?

WRONG

And I’m not talking about the catchup contribution you can make if you’re over 50.

The overall limit is actually $57,000. Depending on your employer (please check with them), you may be able to contribute more than the $19,500 to an after-tax 401k (not Roth) where taxes on gains are not skipped but just deferred until you have withdrawals.

But here’s the twist – you may be able to convert your after-tax 401k to either a roth 401k or roth IRA. This is some hacks!

Again, this is totally dependent on your employer so please check in with them.

Happy Mega-backdoor’ing,

TheJKW