High Earners Can Move Up to $55,000 Annually Into Tax-Free Roth Accounts

A high earner can move up to roughly $55,000 or more into Roth-equivalent accounts in a single year. This is possible by combining the Mega Backdoor Roth and the standard backdoor Roth IRA. The standard backdoor Roth IRA allows for contributions of $7,500, or $8,600 for those age 50 and older, regardless of income level. The Mega Backdoor Roth operates within the gap between the $24,500 elective deferral limit for 401(k) plans and the $72,000 overall annual limit on total employee and employer contributions for 2026. This strategy requires an employer plan that allows after-tax contributions and either in-service withdrawals to a Roth IRA or in-plan Roth conversions. After-tax dollars are filled into that gap and then rolled into Roth accounts for tax-free growth. A participant who uses both strategies simultaneously can move the maximum amount allowed by the IRS limits for 2026.