2019 Microsoft 401k Mega Backdoor Roth Conversion
Lars Phillips | January 9, 2019
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. Thanks to a recent IRS ruling, individuals at specific companies can now save additional Roth dollars each year in their 401(k), above and beyond their normal 401(k) contributions.
Microsoft is one of a handful of companies in the U.S. to make this benefit available to their employees. This is a HUGE benefit. 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). The following video explains this process. Contact us to learn more about these benefits. Additionally, to learn more about all benefits available to Microsoft employees, visit our Microsoft Benefits Resource Page.
March 2019 Update:
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 video is for illustrative purposes only. Individual situations may vary.