Meta Mega Backdoor Roth 2022 – You Can Save Thousands to a Roth!

by Retirement Advisor | Nov 17, 2022 | Backdoor Roth IRA

In 2022 Meta employees can save a maximum of $61,000 in their 401(k). Employees 50 and over can save up to $67,000. Within the Meta 401(k) you can contribute after-tax dollars and convert those dollars to a Roth.

*********
CONNECT: Angela Sorensen, MBA, CFP® on LinkedIn:

SCHEDULE TIME TO DISCUSS YOUR META BENEFITS:

META RESOURCES:

SUBSCRIBE: If you liked this video….
👍 Be sure to hit the like button!
▶️ Subscribe to our channel and sign up for alerts to view more videos created for Meta employees

*********
Video highlights:

00:20 Example of how the Mega Backdoor Roth works for a Meta employee under 50
01:25 How do you convert your after-tax dollars within Fidelity Net Benefits
01:41 Example of how the Mega Backdoor Roth works for a Meta employee 50 and older
02:32 Opportunities to reduce future tax bills using the Meta Mega Backdoor Roth

*********

How does the Mega Backdoor Roth work?
If you’re already maxing out your 401(k) contribution, the Meta Mega Backdoor Roth is another great way to save more for retirement.

In 2022, you can contribute $20,500 into the 401(k) on either a pre-tax or Roth basis if you’re under 50. If you are 50 or older, you can contribute up to $27,000/year.
For many high-income earners, we suggest you invest these dollars pre-tax so you can reduce your taxable income. This is one of the few opportunities to reduce your taxable income.

On top of your contribution, Meta will match $1 for $1 of your 401(k) contribution up to 50% of the IRS Federal Limit of your salary deferrals. If you are under 50, Meta will match up to $10,250. If you are 50 or older, Meta will match up to $13,500.

The 2022 federal limit of total 401(k) contributions is $61,000, for individuals up to 50 and $67,500 for people who are 50 and older. When you use the Mega Backdoor Roth provision, and are under 50, you can contribute up to $30,250 on an after-tax basis and convert it to Roth. For people who are 50 and older, you can contribute up to $27,000 after-tax.

Your contribution elections need to be made within Fidelity Net Benefits. It is very important that after you make your decision on the amount of after-tax dollars you will contribute, you select ‘Convert after-tax to Roth’. Once you make this selection future after-tax contributions will automatically be converted to Roth.

If you’re already saving above and beyond your 401(k), contributing to the Meta Mega Backdoor Roth is the next best way to tax-efficiently save for your long-term goals.

Avier Wealth Advisors
425-467-1011
10655 NE 4th St. Suite 500
Bellevue, WA 98004
mailto:info@avieradvisors.com

We focus on providing comprehensive financial planning and investment advisory strategies for tech professionals and their families.

*********
Third Party:
Avier Wealth Advisors is not affiliated with Meta. There is no guarantee that the information we have provided is accurate. Meta employees are encouraged to contact their employer should they have any questions regarding their employee benefits.

Taxes: Avier Wealth Advisors does not prepare taxes. The tax ideas presented are meant to demonstrate general concepts rather than precise calculations. We consult with your tax professional for exact calculations….(read more)