Mega Backdoor ROTH - did I get the right info?

[nurseart]

Because of a home sale this year my income will be too high to contribute to a ROTH. I am already maxing my HSA and SIMPLE.

I called Ameritrade who does my employer sponsored SIMPLE to see if they would allow after-tax contributions and allow in-service withdraws which I understand to be the relevant questions to do a mega backdoor ROTH. The rep put me on hold and was a bit confused but said no, you cannot do any after-tax contributions to SIMPLEs.

Can someone confirm that is correct info? Would be nice to get a big ROTH in this year over my regular brokerage.

[MDM]

According to the IRS, A SIMPLE IRA cannot be a Roth IRA.

[ixtap]

If you are already maxing your SIMPLE, there is no mechanism for what you propose.

The mega backdoor takes advantage of a discrepancy between the maximum employee deferral contributions to a 401k and a separate total annual additions maximum. There. Is no such gap for a SIMPLE.

[nurseart]

thanks you both :)

[terran]

And just to make sure you know, you can exclude $250k single $500k married of capital gains on the sale of a home you've used as your primary residence for at least 2 of the last 5 years: https://www.irs.gov/taxtopics/tc701. A capital gain is the sale price minus purchase price, selling costs, and some costs while you owned the home.