Author Topic: Backdoor & Mega Backdoor Limits  (Read 1205 times)


  • 5 O'Clock Shadow
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Backdoor & Mega Backdoor Limits
« on: February 02, 2018, 12:06:25 PM »
This will be a slow pitch question for some of you. I've had a hell of a time finding this detail and want to make sure I have it straight:

What is the limit, if any, that I can contribute for a backdoor or mega-backdoor IRA in a single year?

I am over the income limits for both roth and traditional IRA contributions. I'm aware of the usual contribution limits, but can't tell if these limits also apply to non-deductible contributions.

Thank you!


  • Magnum Stache
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  • Location: Sacramento, CA
Re: Backdoor & Mega Backdoor Limits
« Reply #1 on: February 02, 2018, 01:37:45 PM »
Backdoor Roth is simply a traditional IRA contribution that does not qualify to be tax deductible and is converted to Roth IRA almost immediately. Normal contribution limits apply to the after tax traditional IRA contribution ($5500 unless "catch up" applies). If you have any balance in any tIRA in your name, this gets in the way of the Roth conversion part of the backdoor Roth.

Mega-backdoor Roth is basically the same, but executed using after-tax contributions to an employer sponsored retirement account under the plan rules for that account. Not all employer sponsored retirement accounts are set up so that you can execute a mega-backdoor Roth. So you'd have to investigate your specific plan rules. The IRS limit for after-tax 401(k) contributions is the $54,000 overall limit to the account (this includes your ordinary $18,000 contributions and your employer contributions, but not your "catch up" contributions).