Any advantages of participating in 415 Plan limit

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I just learnt that my company offers 415 plan limit. I am currently maxing out my pre-tax account $19,500(401k) and taking advantage of back door Roth ($6,000) for the first time.

With the 415 Plan limit, my understanding is that I could technically contribute approximately $30,000 after tax.

Question: Is the the megabackdoor IRA option that people refer to? If yes, can I contribute $30,000 and convert it into Roth right away to take advantage of tax free growth on interest?

Why does this seem too good to be true.

 

[Mark1]

I just learnt that my company offers 415 plan limit. I am currently maxing out my pre-tax account $19,500(401k) and taking advantage of back door Roth ($6,000) for the first time.

With the 415 Plan limit, my understanding is that I could technically contribute approximately $30,000 after tax.

Question: Is the the megabackdoor IRA option that people refer to? If yes, can I contribute $30,000 and convert it into Roth right away to take advantage of tax free growth on interest?

Why does this seem too good to be true.

It is hard to predict what your plan might allow. I know that when DW fired in 2011, our Fido rep told us about her ability to convert (roll) all of her post tax contributions into a Roth IRA account (all of the associated gains would go into taxable rollover IRA as part of same transaction). Later, I heard at work (same Megacorp) that I could do the same with my post tax contributions while any active employee. When I asked the same Fido rep about this possibility, he said it was unlikely, but let's call Net Benefits and find out. It turns out I could, so I did and ever year after that I would do the same with that's year post tax contributions.

 

[Love This Community]

It is hard to predict what your plan might allow. I know that when DW fired in 2011, our Fido rep told us about her ability to convert (roll) all of her post tax contributions into a Roth IRA account (all of the associated gains would go into taxable rollover IRA as part of same transaction). Later, I heard at work (same Megacorp) that I could do the same with my post tax contributions while any active employee. When I asked the same Fido rep about this possibility, he said it was unlikely, but let's call Net Benefits and find out. It turns out I could, so I did and ever year after that I would do the same with that's year post tax contributions.

Thank you Mark1. I spoke will my plan administrator and he said, I could contribute. Will confirm with my benefits team as well to be sure.

Is my understanding correct about Mega back door Roth being equivalent to back door Roth with only difference being higher contribution limit?

 

[Mark1]

...
Is my understanding correct about Mega back door Roth being equivalent to back door Roth with only difference being higher contribution limit?

I have no idea as this "back door Roth" issue is very confusing to me. I do know that in our situation (DW and I), our limits were based on the yearly, total limit amount that we could contribute to 401K account. Therefore, as Megacorp put more money in our account, our post tax amount limit would go down. It seems like 5 years ago the total limit for the year was in mid 50K range (i.e. my pre-tax contribuiton, megacorp contribution, and post-tax contribution could only add up to this amount).