Author Topic: Anyone with access to a Mega backdoor roth throttling contributions to year end?  (Read 785 times)

PJC74

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With the end of the Mega backdoor Roth most likely looming Jan 1,2022, I decided to set the max I can to after tax contributions in my Employer 401k plan.

Normally I top off the 401k, HSA and Roth IRA and then add an additional 2-5K a year to my after tax.

I will be spending down my emergency fund from 12 months to 9 months with this move, but I feel it is a good move and one I want to take advantage of while I can.

Anyone else doing something similar?

ixtap

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Doesn't throttle usually refer to slowing something down?

Anyway, if you are going to do this, be sure to make the conversion before the end of the year, too, so that you don't get caught in some donut hole.

terran

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I wouldn't consider the end of the mega backdoor Roth certain yet, but I'm keeping an eye on things. If it looks likely that it will be ended then I'll be upping the after-tax contributions for October and November payroll and limiting them to only enough to get the match for December since that contribution doesn't always hit soon enough to make the conversion by January 1, so it might get stuck in after-tax if conversions from after-tax to Roth are eliminated.

boarder42

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As long as you still max everything for 2021 and by throttle you mean increasing which isn't how the term throttle is used. It makes sense. If you're increasing mbdr in lieu of other things it makes 0 sense.

PJC74

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Yes maxing everything except 529 and immediately convert $$ into Roth.
You guys are right with the definition, I meant full throttle 😎

Mustache ride

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Yes, we are doing the same thing. Upped our contributions to hit the limit and will burn down the ~10 month EF. Hopefully the law does not change though!