Originally Posted by
nunyabiz
I don’t think ROTH means what you think it means. Every time you say ROTH I think you really mean excess AFTER-TAX. Which you can convert to ROTH (and doesn’t count towards the $20.5k limit). It’s called the Mega Backdoor ROTH. Perhaps that’s where your confusion is coming in.
Traditional + ROTH =$20.5k max/yr (between ALL plans you contribute to)
Traditional + ROTH + company 9% + company match + excess after tax =$61k max (per eligible 401k plan)
Your point remains to not fill up too soon, but you are referring to after-tax, not ROTH contributions. All $20.5k of your tax advantaged limit could be ROTH contributions if that’s what you wanted.
If you have another 401k (second job, TSP) the $61k limit is PER PLAN.
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I think nunyabiz is correct. I referred to the additional "after tax contributions" above the $20,500 limit incorrectly as ROTH. If one is doing this, and you look at your FEDEX PRSP statement you'll see the correct terms. My apologies for any confusion. -