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415 and Roth limits question

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  • 415 and Roth limits question

    For background currently I max my 403, 457, employee match, and do a backdoor roth for myself and my wife. In addition we contribute to a taxable brokerage account.

    My employer is claiming something very interesting. They say that as of 2020 the 415c limit $56,500. When you subtract my 403b and my match that leaves $25,000 in space under the 415c cap because my roth and 457 do not count towards this limit. Apparently I can write a check to my employer for that $25k which they then deposit into my 403b in after tax dollars (they may use a roth 403 for this, but I am not sure). One it is deposited, they roll it over to my personal Roth at Fidelity. Because it gets classified as a roll over it is not subject to the $6k per person limit that you usually have for an IRA, and because it is withdrawn from the 403 before the end of the year it does not count as going above the limit on the 403.

    It would be nice to get more money into my roth instead of putting it in taxable, but has anyone ever heard of this? It does not seem significantly different than doing a backdoor roth using a traditional IRA, as they just do it through the 403 but it still seems odd.

  • #2
    should read about this:
    also its 57K for 2020.


    • #3
      That’s perfect. Thanks so much.