My wife has a marketing manager position with a multi-national professional services firm. A few years ago her firm began allowing after-tax contributions. Despite being a CPA myself I was unfamiliar with the entire concept and it seemed too good to be true - significantly increased contributions to her 401(k) coming from her after-tax wages that could be immediately automatically converted to Roth contributions? For real? After some online research to fully understand the concept she made the decision to take full advantage of this option by contributing up to the maximum allowed. Fortunately for us the reduced take-home pay from this decision was manageable for our household finances but is certainly a consideration. The result has been to super-charge her Roth 401(k) balance since she has more than doubled her annual contributions for several years now. We both agree that this is one of the real hidden perks from her employment and we are very appreciative for this option. If your 401(k) plan allows for after-tax contributions and you can afford the reduced tax-home pay, by all means consider taking advantage of this investment option.
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My wife has a marketing manager position with a multi-national professional services firm. A few years ago her firm began allowing after-tax contributions. Despite being a CPA myself I was unfamiliar with the entire concept and it seemed too good to be true - significantly increased contributions to her 401(k) coming from her after-tax wages that could be immediately automatically converted to Roth contributions? For real? After some online research to fully understand the concept she made the decision to take full advantage of this option by contributing up to the maximum allowed. Fortunately for us the reduced take-home pay from this decision was manageable for our household finances but is certainly a consideration. The result has been to super-charge her Roth 401(k) balance since she has more than doubled her annual contributions for several years now. We both agree that this is one of the real hidden perks from her employment and we are very appreciative for this option. If your 401(k) plan allows for after-tax contributions and you can afford the reduced tax-home pay, by all means consider taking advantage of this investment option.
Post: Mega Backdoor Roth
Link to comment from June 6, 2026