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Mega back door roth IRA vs 403b/457b

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  • Mega back door roth IRA vs 403b/457b

    Hello,

    New attending making 260k. I'm maxing out my 401k with employer match as well as my Roth IRA. My employer also offers a 403b and a 457b that I may contribute a maximum of 19k each. Would it be better to max out both the 403b and 457b for a combined 38k total or would it be better to do a mega back door roth IRA contribution (which would be ~36k to reach the allowed 56k limit)?

    Thanks.

  • #2
    Does your plan allow megaback door?

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    • #3
      There is only one employee elective contribution limit (2019 = $19K) across all 401k, 403b, SARSEP and SIMPLE IRA plans. If you are maxing the employee elective contribution limit with a 401k you can not make any 403b employee elective contributions.

      The 457b has a separate but equal contribution limit (2019 = $19K) that also is not included in the employee + employer annual addition limit (2019 = $56K).

      You can only do a Mega Backdoor Roth. If an employer plan allows employee after-tax contributions and (in-service rollovers and/or In-plan Roth Rollovers IRR). Your maximum employee after-tax contribution would be = $56K - any employee elective contributions - any employer contributions to that plan

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      • #4
        and what is your marginal tax rate?

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