Your elective contribution can be Roth assuming your plan allows it.

Excellent post, thank you! And thank you for keeping it updated as new information becomes available (hope to see a 2023 update soon). I’m a Solo S-Corp with a Solo 401(k) that allows anything that’s legal.

After reading your post, I’m left with one question…

Can the elective contribution be made to a Roth 401(k) in this process (and therefor also after tax), and still allow the After tax 401(k) contribution up to the total limit for mega back door conversion?

For Example:

• 401(k) Traditional Employer Profit Share of $10,000

• 401(k) Roth Elective Contribution of $22,500 + $7500 catchup = $30k

• 401(k) After Tax contribution up to $33,500 ($73,500–$10,000-$30,000)

Is this allowed? Or does the employee elective contribution portion have to be Pre-tax (traditional 401k) to qualify?

Thank you in advance for the help and insight.

-Steve W

Our opinion is the overall limit in 415C applies on a per-employer basis provided that the employers are unrelated. That limit is the LESSER of $61,000 for 2022 or 100% of the participant’s compensation (link).

Since Job #1 the total compensation is $10,000, the maximum contribution in that specific plan (regardless of pre-tax/after-tax) would be $10,000.

makes 10k W2 from a startup that offers a 401k specifically with all of the steps of the MBDroth
and
makes 190k W2 from another company that does not offer a 401k or any benefits

Is there any reason why they could not use income from one employer (or any other legal source) to make After-tax contributions to their 401k (at the other company)?

Please note this question regards specifically and only the after-tax voluntary contributions, which may be handled differently than the other types of contributions

If there is a reason why this is ok, or why it is not ok, could you please provide a source for the information? The internet and even several CPAs I know seem stumped by this one (although they each have an opinion, they are quick to say it is an assumption and no one has any data e.g. from irs.gov or the like)

Thanks very much

Thank you