Mega backdoor Roth: after-tax 401(k) contributions, the $72,000 limit and two ways to convert
A mega backdoor Roth puts after-tax contributions into a 401(k) and converts them to Roth through an in-plan conversion or an in-service withdrawal to a Roth IRA. For 2026 the room is $72,000 minus employee and employer contributions. The plan has to allow it, earnings are taxable, and nondiscrimination testing can limit higher-paid employees.
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