Below picture is what I see on the Merrill Lynch portal. But it's a bit confusing to see two things: A) Combination of pre-tax and Roth contributions is $22,500 B) Total annual contributions is $66,000 Aren't the two statements contradicting above? If not, can someone please explain how so? #personalfinance #investments #401k #rothira #Ira #taxes #tax
Pre-tax and Roth rows are not referring to the mega backdoor Roth. Those are normal contributions.
$22.5k = the total amount that you can contribute to traditional and Roth accounts directly $66k = the total amount that you and your employer in total can contribute to all retirement accounts period (including traditional 401k, Roth, and after tax-> Mega backdoor Roth
How about traditional to roth ira conversion
Annual deferment limit vs total contribution limit. Other comments will explain
After tax contribution are the rest Google "after tax Roth conversion" May or may not be allowed by your plan
Company match and after tax contributions (different from Roth 401K contributions) make up for the rest. Google "mega backdoor" for more.