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Real Client Story: Using A Mega Backdoor Roth To Explode Retirement Savings

Jennifer’s Story

Jennifer has been a diligent saver for years. She’s regularly maxed out her contributions to her employer-sponsored Traditional 401(k). But a recent update in her company’s retirement options has left her feeling unsure of how to proceed. Jennifer has been notified of the following:

After-tax contributions: This feature allows 401(k) plan participants to invest additional funds into their Traditional 401(k) account beyond the $20,500 annual IRS 402g contribution limit. Additional funds can be added up to the annual IRS 415 contribution limit of $61,000.

Roth in-plan conversions: This feature allows participants to convert all or part of their pre-tax and after-tax Traditional 401(k) contributions to their Roth after-tax account.

With this new information, Jennifer reaches out to Crafted Finance for help. Her questions include the following: 

  • Does it still make sense to max out pre-tax contributions, or should the initial $20,500 be put towards Roth contributions?
  • If the initial $20,500 are put towards pre-tax contributions, is there a benefit to taking advantage of the new option to convert to a Roth in-plan?
  • Is it a good idea to put more after-tax dollars into the $61,000 limit plan? There’s no immediate need for cash, but eventually she intends to buy a house.

Crafted Finance’s Solution

Jennifer is already approaching her long-term retirement goals at full-speed. But with these new retirement options, she’ll be able to take her savings into overdrive. 

It’s a fantastic “problem” to have! So we start off by telling Jennifer she’s in a position to make a decision based on her own personal preference.

If she continues as is ($20,500 in pre-tax contributions to her traditional 401(K)), she’ll still hit her long-term financial goals. But by making post-tax contributions, and converting to a Roth in-plan retirement account, she’ll be able to knock them out of the park.

Below, in green, you can see the lifetime difference these Roth additions will make:

By 2042, Jennifer will have $733k more in savings. But the truly staggering difference happens over the decades that follow. By shifting to more Roth-based assets, Jennifer has the ability to create an additional $16.5M in lifetime value. 

Still, there are tradeoffs to making after-tax (Roth) contributions:

  • She’ll have to adjust to her take-home pay decreasing,
  • She’ll need to sell shares of stock in her brokerage account, when cash is needed,
  • And she’ll have less cash to put into other accounts (ex: her brokerage) when investing.


Jennifer is excited about her company’s new opportunities for retirement. And she decides to take advantage of some of the long-term benefits the Roth additions offer. With her ideal retirement more than on track, she only goes part way on the full $61,000 annual limit. This way, she’s able to keep more take home pay, and free up cash for other, more-liquid investments.

By working with Crafted Finance, Jennifer feels she has a trusted partner for making the necessary changes to her budget. And she knows there’s help in moving cash around when it comes time to buy a house. 

If you relate to Jennifer’s story, or are facing your own unique challenges preparing for retirement, don’t hesitate to reach out. You can contact us at (650) 336-0598, or schedule a complimentary consultation to discuss your situation. 

*Note: Specific client details have been changed for privacy reasons.

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Kristin Harad

Marketing Coach

Step right up and meet Kristin Harad, the Marketing Coach wizard! Guiding businesses through the intricate maze of marketing, Kristin combines her smarts, pizzazz, and a hefty portfolio of wins to show she’s the real deal. Ever wonder what makes a brand pop and a strategy rock? Kristin’s your answer, lighting up the marketing world and turning potential into prowess.

Boasting three decades in the marketing arena, Kristin’s more than just a seasoned pro – she’s a beacon. Whether she’s spotting the next big trend or identifying a golden opportunity, she’s always got her finger on the pulse. And the cherry on top? Her rock-solid commitment to catapulting her clients right to the top of the business game. Dive into the marketing world with Kristin, and watch magic happen!

Jon Fogg

Content Creator

Jon Fogg is a dynamic and innovative content creator who has been making waves in the digital realm. With a passion for creativity and a flair for storytelling, Jon has captivated the financial world through his engaging and diverse content.

When he’s is not working on an SEO blog or case study, you’ll find him enjoying local art galleries or a phenomenal read. Friends and colleagues often commend him for his clear enthusiasm and dedication, which is evident in every project he undertakes. 

Kingston Hollman MBA


Meet Kingston Hollman, the compliance guru everyone’s been talking about. With a sharp mind for regulatory ins and outs, Kingston is all about keeping businesses on the straight and narrow. That’s why he’s a go-to in the compliance world!

Sporting an MBA under his belt, Kingston’s not just about book smarts. He knows the fine dance between business strategy and staying in line with the rules. And guess what? He’s mastered it. Ensuring companies sail smoothly through the often-stormy waters of compliance is his game.

From the get-go, Kingston’s been crafting top-tier compliance programs, tailored just right for all sorts of industries. It’s his eye for detail and that knack for spotting the little things that make him stand out. He doesn’t just set up a system; he fosters a whole vibe of staying compliant, making sure everyone’s on board.

Jessica Martineau

Client Operations Manager

Jessica is a seasoned professional with a diverse background, bringing a decade of expertise across multiple industries. A proud graduate of SPU, her journey in the professional world is marked by significant accomplishments.

With nearly eight years dedicated to managing projects in the graphics and built environment sectors, Jessica has honed her skills as a meticulous Project Manager. This tenure has instilled in her a knack for thriving within organized structures while fostering robust client relationships, a hallmark of her professional ethos.

Her experience in the Finance industry spans almost a decade, where she has held pivotal roles as Lead Client Operations Manager and Director of Operations. Notably, her FINRA SIE Certification stands as a testament to her commitment to excellence.

Jessica’s strengths lie in cultivating enduring client connections, fueled by her passion for delivering thorough solutions. She finds joy in understanding and engaging with her colleagues, nurturing a cohesive work culture.

As a Pacific Northwest native, Jessica enjoys hiking, camping, and skiing. She loves reading, attending live music, plays, and comedy shows. Always a foodie, she delights in discovering new restaurants and revisiting old favorites, especially if there is a water view.

Most importantly, Jessica’s world revolves around her family—her amazing husband, Lee, and their two great kids. They are her inspiration and the anchor to her life outside of work.

Dionne Kelly

Executive Assistant

Let’s dive into the world of Dionne Kelly! Born in St. Kitts and with her roots deep in Barbados, Dionne’s been globe-trotting from her island homes to Canada, the USA, and Belize. Got a love for tropical spots? So does Dionne. Her passport’s got stamps that tell tales of sun, sea, and a bunch of awesome adventures.

Now, when it comes to her profession, Dionne’s the real deal. Over 20 years in the game as an Executive Assistant, she’s been the secret ingredient for bigwig C-suite execs. Think of a challenge, and Dionne’s likely tackled it head-on with her unbeatable organizational skills and eagle eye for detail. 

Oh, and did we mention she’s a foodie? Dionne’s taste buds have danced across diverse culinary landscapes, adding a sprinkle of global flavor to her persona. In the world of executive support, she’s a powerhouse, always two steps ahead and ready to make things happen. 

Joe Wride CFP®

Founder & CEO

Meet Joe Wride, the president and founder of Crafted Finance. With a knack for pension and investment management, insurance, and financial planning, Joe’s all about offering top-notch services without breaking the bank. That’s why he started Crafted Finance!

A proud Finance major from Washington State University, Joe’s got the credentials to back it up as a Chartered Life Underwriter and CERTIFIED FINANCIAL PLANNER™ Professional. Since 2009, he’s been helping individuals, families, and pension plans make sense of their finances. Joe’s even on the board of the Financial Planning Association’s Puget Sound chapter. Check out his LinkedIn profile here.

Joe gets that everyone’s got their own money story. That’s why he’s crafted a unique process to help folks of all stripes manage their finances, whether they’re flying solo, raising a family, or running a company. He’s all about learning and growing to make sure his guidance is just the right fit for his clients.

When he’s not crunching numbers, you’ll find Joe enjoying the Seattle life. He’s into skateboarding at Alki beach, biking, golfing, snowboarding, hiking, and camping. Sports fan? You bet! Joe’s a die-hard supporter of the Cougars, Mariners, Seahawks, and Sonics. But what really matters to him is family time with his wife Jessica, daughter Ocean, and dog Kanga. Joe’s excited to welcome more kiddos into their home through foster care and adoption in the future.

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