Retirement
advanced · $250K - $500K
If your employer 401(k) allows after-tax contributions and in-plan conversions, you can effectively contribute $40,000+ more to Roth annually beyond the normal limits.
This is how some high earners add more to tax-free retirement savings beyond the normal limits. 2026 total limit is $72,000 (or $80,000 if 50+, $83,250 if 60-63).
Annual Limit
$72,000 total ($80,000 if 50+, $83,250 if 60-63) - 2026
Key takeaways
- It uses after-tax 401(k) contributions, converted to Roth, to add Roth savings beyond the normal employee limit.
- It only works if your plan allows both after-tax contributions and in-plan conversions or in-service distributions.
- The 2026 total 401(k) limit across all sources is $72,000 ($80,000 if 50+, $83,250 if 60-63); your after-tax room is that limit minus your deferrals and employer match.
- Converted amounts can go to a Roth 401(k) or roll to a Roth IRA.
Requirements
- Employer 401(k) allows after-tax contributions
- Plan allows in-service distributions or in-plan Roth conversions
- High income and extra savings capacity
How to Implement
- 1Confirm your plan allows after-tax contributions (ask HR)
- 2Contribute up to the regular 401(k) limit ($24,500 in 2026)
- 3Contribute after-tax dollars up to $72,000 total limit
- 4Immediately convert after-tax contributions to Roth 401(k)
- 5Or roll over to Roth IRA
The bottom line
The Mega Backdoor Roth can move tens of thousands of extra dollars into Roth space each year, but only when the employer plan supports it. It sits on top of, not instead of, regular Roth contributions.
Frequently Asked Questions
Related retirement strategies
Sources
- Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
- Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
- Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits
Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.