Originally Posted by ThumbsUp

I’m not sure if that was directed at my post, but what Guppie said is correct if you only consider elective deferrals and the company contributions. However, when considering after tax contributions, you can fully fund your contributions for the year:

For 2020:

19500 Elective Deferral limit (plus 6500 if you’re old enough for catchup)

+ whatever company contributions. The amount doesn’t really matter, but we can use 30k from Guppie’s example.

That brings you to $56k, leaving either a $1k or $7500, if you are eligible for catchup, deficit.

As long as you have completed your elective deferrals for the year in their entirety, you can contribute whatever you need to make up in your deficit as after tax contributions. These can immediately be recharacterized as Roth contributions by filing a form with Schwab. If you contribute your elective deferrals as Roth as opposed to traditional, those were after tax anyway. Schwab will even allow you to cut a check for the exact amount at the end of year to round of this off.

So as long as you have earned enough money to contribute to the limit (you can’t contribute more money than you haven’t been paid through elective deferrals and after tax contributions), you should always be able to max out your annual contributions as long as you aren’t on probation or taking large leaves of absence.

A search on google of mega back door Roth explains this also. It’s a great deal.