Clarify this part.

As in your personal 401k contributions were into a Roth 401k?

As I understand the mega backdoor Roth it would be your employer's after tax match contributions that you could move into a Roth vehicle without creating a taxable event for yourself. But this may or may not be possible.

For a MBR to be possible my understanding is first your employer and the company running the 401k have to specifically allow this (which most do not) and secondly it has to be done in the same year (e.g December of 2021 you move the after tax employer contributions to a Roth vehicle).

Since the maximum "match" an employer can make is around 30k (for 2021) it would be hard to understand how this could be a larger amount without generating a significant taxable event.

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Posted by Ramblin Wreck

Member since Aug 2011

3899 posts

Posted on 4/15/22 at 4:53 pm to molsusports

To clarify a bit, everything I have is in a traditional 401K employee savings plan. I was unaware that the company even offered a Roth. I do have company matching contributions, but it is all in the traditional 401K. The after tax dollars in my plan that I'm asking about are a combination of designated after tax contributions made early in my career (I started off pretty green so just split my contributions 50-50 after tax and pretax the first few years I worked) and from designated pretax contributions made later each year that become taxed when I had already maxed out the allowable pretax contributions. The same percentage continued to be put in the savings plan from my pay, but it would become taxed and designated as after tax once the maximum had been reached. I also wonder how the earnings would be treated from the base after tax contributions. In other words, I'm sure the $300K listed as after tax is the total of the actual after tax deposits plus earnings from them. How the earnings would be treated brings up other questions.

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