"The $24,500 employee deferral limit for 2026 is the most commonly known number, but the IRS imposes a separate, higher ceiling under Section 415(c) that governs total contributions to a defined contribution plan, including employee deferrals, employer contributions, and after-tax contributions. That total limit is $72,000 in 2026."
"If you are between the ages of 60 and 63, SECURE 2.0 adds a 'super catch-up' on top of the standard limit. The super catch-up for that age range is $11,250 in 2026, compared to $8,000 for participants age 50 to 59."
"Two plan features must exist for this to work. First, your plan must allow after-tax (non-Roth) contributions beyond the standard deferral. Second, it must allow either in-plan Roth conversions or in-service distributions of those after-tax amounts."
The mega backdoor Roth strategy enables individuals to contribute more to their retirement accounts than commonly known limits suggest. The IRS allows total contributions up to $72,000 in 2026, which includes employee deferrals, employer contributions, and after-tax contributions. For those aged 60 to 63, an additional super catch-up contribution of $11,250 is available. To utilize this strategy, plans must permit after-tax contributions and either in-plan Roth conversions or in-service withdrawals. Understanding these options can significantly enhance retirement savings potential.
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