How much more could your 401(k) hold this year?
Most people stop at the well-known limit on their own contributions. The IRS actually allows far more into a 401(k) each year, and a plan with the right features lets you fill that extra room with money that grows tax-free. Enter a few numbers to see what could be possible.
About you and your plan
Filling the 401(k) to its real limit
Want these numbers in your inbox?
We’ll email you exactly what is on this page, including the inputs you used, so you can share it with your spouse or CPA. No sales follow-up unless you ask.
How the strategy works
A 401(k) has two limits. The one everyone knows caps what you put in from your paycheck. The larger one caps everything that goes into the account from any source. The gap between them is space most people never use. Plans that allow voluntary after-tax contributions let you fill it, and converting that money to Roth means the growth is never taxed again.
Max your regular contributions
Fill your own limit first, pre-tax or Roth 401(k). Make sure you contribute enough each paycheck to collect the full employer match.
Add after-tax contributions
Elect voluntary after-tax contributions, a separate bucket from Roth 401(k), up to the remaining room under the overall limit.
Convert to Roth
Convert the after-tax money to Roth inside the plan (or roll it to a Roth IRA) promptly, so little or no earnings are taxed at conversion.
Not sure whether your plan allows it?
Send us your Summary Plan Description and we’ll tell you whether the mega-backdoor Roth is available to you and how to set it up.