2023 NVIDIA 401(k) and Mega Backdoor Roth
In 2023, you can contribute up to $66,000 if you’re under 50 and $73,500 if you’re 50 or older to your NVIDIA 401(k).
You can fully leverage these limits by taking advantage of the Mega Backdoor Roth. This feature lets you contribute after-tax dollars and convert those dollars to Roth.
To reach these federal limits, your 401(k) offers the following features:
- Pre-tax or Roth contributions.
- NVIDIA’s employer match.
- After-tax contributions using the Mega Backdoor Roth provision.
We will explain each in more detail below and in this video:
2023 NVIDIA 401(k) Basics
In 2023, if you’re under 50 you can contribute up to $22,500 and if you’re 50 or older you can contribute up to $30,000 ($22,500 plus a $7,500 catch-up contribution). These 401(k) contributions can be made on a traditional pre-tax or Roth basis.
The difference between a traditional and Roth 401(k) comes down to when you pay taxes.
Traditional Pre-Tax 401(k): Contributions are made before taxes. They aren’t counted as income, thus reducing your taxable income for that year. When you make withdrawals in the future, they are taxed as ordinary income. Essentially, “you pay the taxes later”
Roth 401(k): Contributions are made after taxes in a Roth 401(k). When you withdraw savings during retirement, they can be tax-free. In other words, “you pay the taxes now”
NVIDIA Employer Match
NVIDIA offers a match for a percentage of your 401(k) contributions. This is essentially free money that you earn from NVIDIA simply for contributing to your 401(k).
For 2023, employees who contribute to their NVIDIA 401(k) can earn a match up to $9,000. NVIDIA will match dollar-for-dollar every pay period up to $6,000. Beyond that, the company will match fifty cents on each dollar for the next $6,000.[1]
After-Tax Contributions Using the NIVIDIA Mega Backdoor Roth
To illustrate how after-tax contributions to the Mega Backdoor Roth can work, we’ll walk through an example. In this example the employee is under 50 years old. They also max out their 401(k) and receive the full 2023 NVIDIA employer match of $9,000. Here is the breakdown:
- 2023 401(k) contribution: $22,500
- 2023 NVIDIA employer match: $9,000
The pre-tax contribution and their match equal $31,500.
NVIDIA employees are able to contribute up to the federal limit. In 2023, for someone under 50, the limit is $66,000. This means our example employee can contribute up to $34,500 in after-tax dollars.
For someone 50 or older, the 2023 federal limit for 401(k) contributions is $73,500. This means our example employee can also contribute up to $34,500 in after-tax dollars.

To convert these dollars to Roth, you will need to call Fidelity when you make your first contribution. Future contributions will automatically convert to Roth after your initial call.
Mega Backdoor Roth Tax Benefits
The Mega Backdoor Roth does not have the same income and contribution limits of a Roth IRA. This means it can provide high-income earners with access to benefits associated with a Roth IRA.
Within a Roth your money grows tax-free. These same dollars, and the growth, can be tax-free when accessed in retirement. Having additional money in a Roth account enables you to manage your retirement distributions. This gives you more control over future taxable retirement income.
Supplement Cash Flow Using NVDA Restricted Stock Units
Determining how much you are able to contribute to the Mega Backdoor Roth can be tricky. You need to think through your monthly cash-flow needs to come up with an amount that works best for your situation.
As an NVIDIA employee you receive Restricted Stock Units (RSUs) which can be sold once they vest. With careful financial planning you can sell these shares and use the proceeds for your monthly living expenses. This can free up cash from your salary to allocate towards your 401(k) and Mega Backdoor Roth.
The NVIDIA Mega Backdoor Roth is a “Roth on Steroids”
We think this is one of the best benefits available to employees at NVIDIA. If you are on track to max out your NVIDIA 401(k) this is a benefit worth learning more about. Reach out to us with questions.