With 401(k) contribution limits increased in 2019, Microsoft employees have the ability to save even more into Roth by utilizing the 401(k) After-Tax Roth Conversion benefit, also known as the Mega Backdoor Roth Conversion.
Microsoft 401k Mega Backdoor Roth Conversion
The Microsoft employee benefits offering has some great options for employees. Microsoft is one of a handful of companies in the U.S. to make this benefit available to their employees. This has the potential to make a significant difference; at Avier we have already helped our current Microsoft clients save up to an extra $27,500/year in after-tax dollars that can automatically be converted into a Roth 401(k).
As of March 2019, Microsoft allows for daily conversions from after-tax to Roth within the 401(k). This is a great change that could help you potentially save additional dollars in taxes.
Bottom Line on the Microsoft 401k Mega Backdoor Roth Conversion
If you are a Microsoft employee who wants to start taking advantage of the Microsoft 401(k) After-Tax Roth Conversion benefit, or any of the other benefits offered in the Microsoft employee benefits plan, please schedule a time to meet with one of our specialists below.
Microsoft recently made a change to their conversion schedule, now allowing for DAILY conversions from after-tax to Roth within the 401(k). This is a great change that could help you potentially save additional dollars in taxes.
This content is for illustrative purposes only. Individual situations may vary. Please consult your tax advisor to determine if the scenarios discussed in this article are right for you. Investment Advisory services offered through Avier Wealth Advisors. Avier is not affiliated with Microsoft.