What Is a Mega Backdoor Roth?

Rolling over funds from tax-deferred accounts into tax-advantaged Roth accounts can reduce your tax liability in a given year while also building your Real Wealth for retirement. You’ll pay taxes on the money you roll over, but you won’t pay taxes on your Roth’s earnings or future withdrawals. 

Boeing’s Mega Backdoor Roth leverages specific features of The Boeing Company 401(k) Retirement Plan (VIP) that allow qualified employees to make extra 401(k) contributions that can be converted into a Roth account. 

Mega Backdoor Roth Eligibility

The Mega Backdoor Roth is not a separate plan, but a strategy for using Aftertax contributions to the The Boeing Company 401(k) Plan (VIP).

Generally, any employee who is eligible for the The Boeing Company 401(k) Plan (VIP) is eligible to open a Mega Backdoor Roth account. 

Contribution Types and Limits

Contributions to the Mega Backdoor Roth are Aftertax. 

In 2025 the maximum allowable contributions to the 401(k) and Mega Backdoor Roth are:

• If you are younger than 50:

• Pretax to 401(k): $23,500
• Aftertax to Mega Backdoor Roth: $46,500

• Total: $70,000

• If you are 50 or older: 

• Pretax to 401(k): $23,500
• Catch-Up Contribution to 401(k): $7,500 
• Aftertax to Mega Backdoor Roth: $46,500

• Total: $77,500

Withdrawal Checklist

You can make tax-free withdrawals from your Mega Backdoor Roth account if: 

• Your Mega Backdoor Roth account has been open for at least five years. 
• You are at least 59 ½ years old. 

Real Wealth Questions

Is making Aftertax contributions to your Boeing 401(k) and rolling them over into the Mega Backdoor Roth the most advantageous use of those funds?

Should you prioritize maximizing contributions into your Mega Backdoor Roth?

Will you be able to consistently make Aftertax contributions to the Mega Backdoor Roth throughout the year without affecting your other Real Wealth goals?

What happens if you need to access money in your Mega Backdoor Roth before age 59 ½ or before the account has been open for five years to cover an emergency, such as a job loss or a health problem?

How will withdrawals from your Mega Backdoor Roth affect your required minimum distributions in retirement?

Questions? Visit the Boeing Benefits Glossary.