Determine your exact remaining after-tax 401(k) space for a Mega Backdoor Roth conversion after accounting for employee deferrals, employer matches, and IRS compensation limits.
Updated with official IRS 2026 contribution limits (Section 415(c) & Section 401(a)(17)).
To hit your maximum after-tax limit evenly throughout the tax year without under-contributing or front-loading, set your payroll deduction to:
Email My Mega Backdoor Roth Plan (includes the free newsletter)
โ No spam. Unsubscribe anytime with 1 click.
The Mega Backdoor Roth strategy allows high-income earners to exceed the standard $24,000 elective deferral limit and contribute up to the total IRS Section 415(c) limit ($71,000 for under age 50 in 2026) into tax-free Roth accounts.
Even if your compensation is $500,000, federal law caps the maximum salary recognized for 401(k) matching at $355,000 in 2026. Any percentage match formula only calculates up to this ceiling.
After making voluntary after-tax contributions, you must immediately convert them to a Roth 401(k) or Roth IRA. Doing this automatically prevents earnings from growing in a taxable pre-tax bucket.
Plan compliance checklist and 401(k) waterfall verification flowchart. Keep on hand when reviewing plan summary documents or speaking with HR.
Click below to download or save your printable companion guide:
We also sent a backup copy to your email. Keep this checklist handy for retirement and tax planning!
Point your phone's camera at the QR code to seamlessly continue reading or calculate with your current inputs on mobile.
Buck by Buck
No app required Press โ+D or Ctrl+D to save to your browser bookmarks.
Discussion 0
Author replies within 24h