Mega Backdoor Roth

LinkedIn Sowhatdidi
Apr 22, 2018 42 Comments

Which companies allow Mega Backdoor Roth? I know LinkedIn, Microsoft, Google does. Do all companies allow Mega Backdoor Roth? Also, can i contribute to Mega Backdoor Roth from my bank account, or does it have to come from salary to after-tax bucket in Fidelity, followed by moving the after-tax bucket to Roth bucket?

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TOP 42 Comments
  • AT&T / Eng
    DDM2K

    AT&T Eng

    PRE
    Optum, Windstream, AT&T, Verizon
    DDM2Kmore
    So what’s the process?
    Apr 22, 2018 11
    • LinkedIn $$$$$$$$$
      LinkedIn using fidelity has an option to do the 401k to Roth IRA conversion automatically quarterly
      Apr 23, 2018
    • LinkedIn Sowhatdidi
      OP
      Good to know
      Apr 23, 2018
    • Walmart / Product Lahdeedah
      Woah— I thought there was an income limit in order to take advantage of Roth IRA... no?
      Apr 23, 2018
    • Google / Eng
      J32dfQ

      Google Eng

      PRE
      Facebook
      J32dfQmore
      The answer is yes, there is a income limit to directly take advantage of Roth IRA. Those above the income limit need to do a backdoor Roth IRA. So the income limit is moot since you can go around it using a trick
      Apr 23, 2018
    • LinkedIn $$$$$$$$$
      Also backdoor vs mega backdoor and two different things. So be careful with wording.
      Apr 23, 2018
  • Amazon Translator
    Sounds like a porno about someone named Roth
    Apr 22, 2018 4
    • LinkedIn Sowhatdidi
      OP
      Yeah, that’s the only thing it should mean to Amazon employees.
      Apr 22, 2018
    • Amazon Translator
      I actually work at LinkedIn now...
      Apr 22, 2018
    • LinkedIn Sowhatdidi
      OP
      That’s a good choice.
      Apr 22, 2018
    • Amazon Translator
      Nah I’m just playing with you.
      Apr 22, 2018
  • Amazon / Eng cDgs64
    Amazon doesn’t😭
    Apr 22, 2018 1
    • LinkedIn Sowhatdidi
      OP
      Leave there, seriously, not only because of this, but many other things
      Apr 22, 2018
  • LinkedIn Sowhatdidi
    OP
    If I max 401K with 18.5K, plus the employer match of 9.25K, does that mean that I can contribute to Roth IRA the maximum amount of 55K-18.5K-9.25K, which is roughly 27K?
    Apr 22, 2018 4
    • That’s correct. And it is called contribution to after-tax 401K. The conversion later makes it Roth.
      Apr 22, 2018
    • Microsoft Elon'sMusk
      Roth IRA has income limits.
      Apr 22, 2018
    • LinkedIn Sowhatdidi
      OP
      Hence the word backdoor.
      Apr 22, 2018
    • LinkedIn Sthsth
      If I max out Roth IRA with 55K-18.5K-9.25K, which is roughly 27K, can I still contribute to traditional IRA up to its max of 5.5K?
      Apr 28, 2018
  • LinkedIn Sowhatdidi
    OP
    Wow, even Apple allows it. That leaves Amazon as the only shitty workplace among FAANG without Mega Backdoor Roth allowance.
    Apr 22, 2018 0
  • Apple / Eng ICT5
    Apple allows it
    Apr 22, 2018 0
  • Netflix Anditsgone
    Netflix has it too
    Apr 22, 2018 0
  • GE gAdv52
    GE allows too
    Apr 22, 2018 0
  • Google / Eng
    Tupak

    Google Eng

    PRE
    Facebook
    Tupakmore
    Facebook allows it too. No you can’t contribute from your bank account, it needs to be a payroll deduction.
    Apr 22, 2018 0
  • Snapchat VnGz18
    Snap has it
    Apr 22, 2018 0
  • Microsoft Elon'sMusk
    Can I move ESPP sale to Roth then to Roth IRA?
    Apr 22, 2018 1
  • IBM yPXU60
    IBM allows it
    Feb 16 0
  • Adobe acrobat
    From what I understand I can do in-plan conversion of after-tax contributions to Roth 401k. But is there a way to convert that to Roth IRA regularly without leaving the company? See the thing is investment options are extremely limited in the 401k plan and I’d like to use this for more varied investments including ETFs and stocks which I can do from a Roth IRA.
    Apr 26, 2018 0
  • Netflix Johnny5
    Netflix allows it
    Apr 22, 2018 0
  • LinkedIn Sowhatdidi
    OP
    Good to know, apparently many more companies than I think allow mega backdoor roth.
    Apr 22, 2018 0
  • LinkedIn C0d3Mon🔑
    There is nothing any company can do for the requirement for it to come from your payroll. It's an IRS rule.
    Apr 22, 2018 0
  • Akamai Technologies VmQQ44
    I don’t understand the allowance aspect. You can do backdoor Roth (conversion) normally through a broker no matter where you work. I do this all the time.
    Aug 5 1
    • Lyft fupaymee
      The mega backdoor is different, its for contributions > 19k 401k limit. This has to be supported by the employer in the plan.
      Aug 6
  • Intuit CottSook
    Intuit supports it.
    Aug 26 0
  • Airbnb gr101
    Airbnb allows it
    Jun 26 0
  • Cisco Buzzman
    Anyone know if VMware allows this?
    Apr 22, 2018 0

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