Is there an upper limit to amount of money a person can contribute to a traditional IRA if he is okay making a non tax deductible contribution?

Question

Consider a person who wants to contribute $50,000 to his traditional IRA account per year. Now I know there is a limit of $6000 for tax deductible amount you can contribute to an IRA every year. But can the person make a non tax deductible contribution of remaining $44,000 ($50,000 - $6000) contribution to  traditional IRA account?
If there is an upper limit for this amount, what is it?

Craig W · Accepted Answer

The IRA contribution limit applies to both deductible and non-deductible contributions. If you were to contribute more than that, you'd have to pay a 6% tax every year until the excess and associated earnings are removed.

Correct answer by Craig W on August 17, 2021

Matthew · Answer

You can directly contribute only up to the annual limit, regardless of whether it's tax deductible or not. However you can contribute more under certain circumstances using what's often called a "mega backdoor Roth IRA conversion."
It goes like this:
You may be eligible to contribute to a 401k plan through your employer. That plan may offer "after tax" contributions in addition to both "traditional" and "Roth" contributions.
That plan may also offer in-plan Roth conversion of your after-tax contributions.
Finally, you can roll over that after tax in-plan conversion Roth 401k into a Roth IRA.
Doing this it's theoretically possible to contribute more. In 2021, for example, the maximum 401k contribution from all sources is $58k. Following this mega backdoor strategy could allow you tens of thousands more per year in a Roth IRA.

Is there an upper limit to amount of money a person can contribute to a traditional IRA if he is okay making a non tax deductible contribution?

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