Author Topic: Maxed out solo, can I still do a mega backdoor Roth?  (Read 237 times)

WorkingToUnwind

  • Bristles
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Maxed out solo, can I still do a mega backdoor Roth?
« on: December 29, 2023, 07:54:56 AM »
Two questions really. I've maxed out my solo 401k. I'm self employed, so I've put in 66K this year. I've been reading about mega backdoor roths but it appears I'm not eligible, correct? The mega balance can only be the remainder of what you haven't put into your 401k pretax up to 66k for 2023?

Other question is the backdoor Roth, not the mega, is not affected by 401k deposits, correct? So I am eligible fto do $6500 in backdoor Roth despite my solo 401k contributions?

Thanks for your help!

ender

  • Walrus Stache
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Re: Maxed out solo, can I still do a mega backdoor Roth?
« Reply #1 on: December 29, 2023, 07:56:17 AM »
Two questions really. I've maxed out my solo 401k. I'm self employed, so I've put in 66K this year. I've been reading about mega backdoor roths but it appears I'm not eligible, correct? The mega balance can only be the remainder of what you haven't put into your 401k pretax up to 66k for 2023?

Other question is the backdoor Roth, not the mega, is not affected by 401k deposits, correct? So I am eligible fto do $6500 in backdoor Roth despite my solo 401k contributions?

Thanks for your help!

Correct, the $66k limit is the entire 401k limit -- counting all contributions, elective deferral, company contributions, and aftertax (megabackdoor roth 401k).

The regular backdoor Roth IRA is not impacted by 401k deposits correct.

WorkingToUnwind

  • Bristles
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Re: Maxed out solo, can I still do a mega backdoor Roth?
« Reply #2 on: December 29, 2023, 12:04:29 PM »
Excellent, thank you.