Appleqsdire

Roth 401k and Roth IRA limits

I am planning on setting up my after-tax contribution to the IRS limit to reach $56,000 for 2019. However, I had a question regarding what applies to this limit. If my employer and I contribute $28,500, that would mean that my after-tax amount I would contribute is $27,500. Then I would roll this over into the in-plan 401k roth and leave it there. This would be a full blown mega backdoor roth 401k ira. However, this and previous years I have been doing the "back door" Roth IRA. Effectively, I have been contributing the IRS limit ($6,000 for 2019) for a traditional IRA (non-employer, personal in a Charles Schwab account), then fully converting the cash in the traditional IRA into a Roth IRA. My question is: does this traditional IRA contribution count to the $56,000 limit? I can't seem to find any information on this and I would need to know so I can determine whether I can contribute the full $27,500, or whether it would be $21,500 if I continue to do the "back door" Roth IRA.

LinkedIn ugjM43 Oct 30, 2019

No. Ira is separate from 401k

Apple qsdire OP Oct 30, 2019

So in theory one could stash away $56,000 for the 401k accounts, and another $6,000 into IRA accounts which basically means 62k in retirement accounts annually?

Amazon xXSR33 Oct 30, 2019

Yes. Your IRA is separate from employer sponsored plans. Did the same for a few years before Amzn and the bad 401k system 😭