Execute a mega backdoor Roth through your employer’s 401(k)
Written confirmation that your plan permits after-tax contributions and in-plan Roth conversion (or in-service distribution), a payroll election set to a specific figure, conversions executed on a rhythm so earnings never accumulate, and the result verified against the W-2 and the 1099-R.
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Who it's for
High-earning US W-2 employees who already max the 401(k) elective deferral limit, fund a Roth IRA via the backdoor method, and whose employer-sponsored 401(k) plan mentions after-tax contributions in its Summary Plan Description.
About this playbook
The mega backdoor Roth lets you contribute far beyond the elective deferral limit by routing after-tax 401(k) money into Roth treatment. This playbook walks you through confirming your plan supports the strategy, calculating exactly how much room you have, setting up the election, and executing conversions on a schedule that avoids taxable earnings. You end with reconciled tax forms and a plan for contingencies like ACP test refunds or a mid-year plan amendment. It does not cover the standard backdoor Roth IRA, solo 401(k) mega backdoor Roths, or the tax implications of converting accumulated earnings. Each phase relies on your specific plan document, so the guide is built around an interrogation script you run against your plan administrator.
What you'll do, step by stepFree preview
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Phase 1: Confirm your plan allows after-tax contributions and Roth conversion
4 stepsPhase 2: Calculate your after-tax contribution headroom
4 stepsPhase 3: Set up after-tax contributions in payroll
3 stepsPhase 4: Execute the Roth conversion
4 stepsPhase 5: Reconcile tax forms at year-end
3 stepsPhase 6: Handle contingencies and failure modes
3 steps
Details
What you need first
You are already maxing the elective deferral limit ($23,500 in 2025). You have access to your plan’s Summary Plan Description or benefits portal. Your employer offers a 401(k) that you participate in. You have a Roth IRA (optional, for the rollover-out route).
