Meta’s mega-backdoor Roth strategy is a powerful way for employees to maximize their retirement savings beyond standard contribution limits. This advanced planning opportunity allows after-tax contributions to grow tax-free, providing a significant advantage for long-term wealth accumulation.
In this guide, you’ll learn everything about Meta’s mega-backdoor Roth, including how it works, contribution limits, tax implications, and case studies to help you decide if it’s right for you.
The mega-backdoor Roth is a strategy for saving more aggressively and tax-efficiently for retirement by making after-tax contributions to a 401(k) plan and then converting those contributions to a Roth IRA or Roth 401(k).
In 2025, individuals can contribute up to $23,500 in pre-tax or Roth 401(k) elective deferrals. Individuals age 50 to 59 or over 63 can make a catch-up contribution of $7,500. Individuals age 60 to 63 can make a catch-up contribution of $11,250.
Meta’s 401(k) matches 50% of elective deferrals and catch-up contributions.
In 2025, individuals under age 50 can make up to $70,000 in total 401(k) contributions. Individuals between the ages of 50 to 59 and over 63 can make up to $77,500 in total 401(k) contributions. Individuals between the ages of 60 and 63 can make up to $81,250 in total 401(k) contributions.
For Meta employees utilizing the mega-backdoor Roth strategy in 2025, the amount they can contribute as after-tax contributions is the difference between the total 401(k) contribution limit and the combined limits for elective deferrals, employer matching, and catch-up contributions.
To complete the mega-backdoor Roth and avoid a future tax headache, it is critical to convert funds from the after-tax 401(k) to either a Roth 401(k) or Roth IRA.
After-tax 401(k) contributions are not taxed when distributed. However, if left untreated, after-tax earnings are taxed as ordinary income when distributed from the 401(k).
So, why would anyone utilize after-tax contributions? After-tax 401(k) contributions grow tax-free after the funds are converted to a Roth IRA or Roth 401(k). Without a Roth conversion, there are generally more tax-efficient ways to save for retirement than by participating in an after-tax 401(k).
Here are steps for executing the mega-backdoor Roth:
Jeff – 60 years old
Jeff is a product manager at Meta. Jeff earns $500,000 annually and wants to save more for retirement using the mega-backdoor Roth strategy.
Mark – 55 years old
Mark is an account executive at Meta. Mark earns $250,000 annually and wants to save more for retirement using the mega-backdoor Roth strategy.
Mark can contribute an additional $31,000 in after-tax savings.
Kelly – 48 years old
Kelly is a senior director at Meta. Kelly earns $300,000 annually and wants to save more for retirement using the mega-backdoor Roth strategy.
Most companies do not offer the mega-backdoor Roth strategy. Without a doubt, the mega-backdoor Roth is one of the most valuable benefits for high-income Meta employees. The mega-backdoor Roth provides a lucrative opportunity for Meta employees seeking to enhance tax-free retirement savings. However, it’s important to acknowledge that it’s not for everybody!
Here are some pros and cons for using the Meta mega-backdoor Roth:
Pros
Cons
Take the time to determine if the Meta (Facebook) mega-backdoor Roth is right for your unique financial situation. Consulting with a fiduciary financial planner can help provide peace of mind for you and your family.
If you’re a Meta employee and have questions about after-tax 401(k) savings or the mega-backdoor Roth strategy, feel free to contact me at brianfry@safelandingfinancial.com.
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Disclosure: Safe Landing Financial is not affiliated, associated, or endorsed by Meta. This information is supplied from sources that we believe to be reliable, however, we cannot guarantee the accuracy. All information is subject to change without notice.
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