Tech Workers Can Funnel $34,000 More Into Roth 401(k)s Under 2026 Rules
Updated
Updated · 24/7 Wall St. · Aug 12
Tech Workers Can Funnel $34,000 More Into Roth 401(k)s Under 2026 Rules
3 articles · Updated · 24/7 Wall St. · Aug 12
Summary
$72,000 annual 401(k) limits in 2026 leave many high-paid tech workers roughly $34,000 of extra after-tax room beyond the standard $24,500 deferral and employer match.
That space becomes a mega backdoor Roth only if a plan allows after-tax contributions plus either in-plan Roth conversion or an in-service rollover; immediate conversion keeps the principal tax-free and minimizes taxable interim gains.
SECURE 2.0 made the tactic more valuable this year by forcing workers 50 and older who earned above $150,000 in 2025 to make catch-up contributions to Roth, not pre-tax.
A 55-year-old engineer can now combine the strategy with the $8,000 catch-up to put nearly $66,000 a year into Roth accounts, while ages 60 to 63 can use an $11,250 super catch-up.
Microsoft, Meta, Alphabet, Amazon and Oracle are cited as offering compatible plans, and workers are urged to check plan documents for both after-tax contributions and Roth conversion features.