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Personal Investments • Mega Backdoor Roth - At What Point is Enough Enough?

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I'm looking for thoughts on if and when it makes sense to stop increasing your contributions to a Mega Backdoor Roth instead of trying to maximize all available space in it.

Background:
  • We're a early 30s couple with two reasonably similar incomes (overall income in mid $300K range and increasing at a moderate rate) and stable jobs
  • We have no kids and no plans for any
  • Biggest expenses are a monthly mortgage of $3800 and two monthly car payments totaling $1700 (these will be done mid 2026)
  • We've both been leveraging the backdoor Roth IRA and max out our 403b accounts through our jobs
  • Lately, we've been also taking advantage of the Mega Backdoor Roth to the tune of another 15% or so of our salaries
  • Overall, we're projected to save over $100k in our IRAs and 403bs this next year, not including a 10% company match
I've been a long-time lurker on these forums and I have seen time and time again how important it is to maximize tax-advantaged space. Thus, my goal has always been to max out the Mega Backdoor Roth. I truly thought that was achievable with our salaries and expenses. I recently learned though I had made a poor assumption and my company's match goes into a separate plan, which has its own limit of $70.5k for 2025.

In short, I used to think my company match would count against my contribution limit for the Mega Backdoor Roth and have learned it doesn't. That means I can contribute a lot more. The idea of contributing that much more seems overwhelming to me and I'm stuck wondering if we're limiting our quality of life more than we need to now.

Statistics: Posted by SeekingWealth — Tue Dec 24, 2024 9:25 am — Replies 2 — Views 246



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