Mega Backdoor Roth vs Backdoor Roth IRA
A **backdoor Roth IRA** is a nondeductible traditional IRA contribution converted to Roth—works when income exceeds direct Roth limits. **Mega backdoor Roth** routes after-tax 401(k) contributions to in-plan Roth conversions, up to ~$46,000+ annually if your plan allows.
Step by step
1. Confirm plan features
Mega needs after-tax deferrals and in-service conversion.
2. Track Form 8606
Backdoor IRA needs pro-rata awareness if you hold pre-tax IRA balances.
3. Automate conversions
Mega often requires payroll coordination—HR or admin help.
Mega backdoor vs backdoor IRA
High earners with generous 401(k) plans favor mega; others use annual backdoor.
- Backdoor Roth IRA: ~$7k/yr limit; IRA pro-rata rules.
- Mega backdoor 401(k): Much higher ceiling; plan must allow it.
Use our calculators
Common mistakes
- Mega without in-service withdrawals enabled
- Ignoring pro-rata on backdoor IRA
FAQ
Is mega backdoor legal?
Yes when plan documents and IRS rules are followed—verify with CPA.