If one changes a job during mid of the year, and each company has 401(k) plan that allows mega backdoor contribution, can he or she have separate mega backdoor contribution for each of the companies?
For example, in 2020, the limit is $57,000. The person has $19,500 pre-tax contribution, their company (company A) matches $7500, so they have $30,000 after-tax contribution, which is then rolled to a Roth IRA account via mega backdoor.
Later, the person changes job to company B. They are not able to make any pre-tax contribution anymore (as they already reached the $19,500 limit in company A), but they are still able to contribute $57,000 after-tax contribution, which is then again rolled to the same or another Roth IRA account via mega backdoor.
Is the mega backdoor contribution for company B allowed?
Submitted October 27, 2020 at 08:39PM by LimeEfficient https://ift.tt/3jzYUI7
