Is there a shared cap, limit or other mutual exclusivity between doing both a "traditional" backdoor Roth IRA and also a "mega" backdoor Roth IRA in the same year?
DW and I are earned-out of normal "front door" Roth IRA contributions and plan to do after-tax (non-qualified, is that the term?) IRA contributions this year and then do a rollover conversion into a Roth IRA. This is the "traditional" backdoor Roth IRA and the annual max defined by the IRS is $5500/year for 2015.
At the same time, my megacorp's 401k allows after-tax non-Roth contributions as well as in-service distributions of those after-tax non-Roth contributions. I can then do a rollover conversion of those after-tax non-Roth contributions into a Roth IRA. This is referred to as a "mega" backdoor Roth IRA because the 401k plan max, for me, is $20k/year.
Can I do both, resulting in a max possible amount of $25.5k into a Roth IRA? Do I have any of my assumptions above incorrect, or are there other gotchas you see? Thanks for your help!
DW and I are earned-out of normal "front door" Roth IRA contributions and plan to do after-tax (non-qualified, is that the term?) IRA contributions this year and then do a rollover conversion into a Roth IRA. This is the "traditional" backdoor Roth IRA and the annual max defined by the IRS is $5500/year for 2015.
At the same time, my megacorp's 401k allows after-tax non-Roth contributions as well as in-service distributions of those after-tax non-Roth contributions. I can then do a rollover conversion of those after-tax non-Roth contributions into a Roth IRA. This is referred to as a "mega" backdoor Roth IRA because the 401k plan max, for me, is $20k/year.
Can I do both, resulting in a max possible amount of $25.5k into a Roth IRA? Do I have any of my assumptions above incorrect, or are there other gotchas you see? Thanks for your help!