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Unlocking the Benefits of a Mega Roth IRA for Conagra Brands Employees: A Pathway to Enhanced Retirement Savings

Healthcare Provider Update: Healthcare Provider for Conagra Brands: For Conagra Brands, the healthcare provider information is typically linked to their employment benefits and can vary based on the location and specific plans offered to employees. Generally, large companies like Conagra may partner with major insurers such as UnitedHealthcare, Anthem (Elevance Health), or Aetna to provide health insurance benefits to their employees. It is advisable for Enrolled members to refer to their HR department or employee benefit documentation for specific provider details. Potential Healthcare Cost Increases in 2026: As we look ahead to 2026, significant increases in healthcare costs are anticipated, largely influenced by the expiration of enhanced federal subsidies under the Affordable Care Act (ACA). Reports indicate that premium rates for ACA marketplace plans could rise by over 60% in certain states due to higher medical expenses and market adjustments. Notably, a staggering 92% of policyholders may face a potential increase in their out-of-pocket premiums by more than 75%, reflecting the compounded effect of expiring subsidies and aggressive rate hikes from leading insurers. This perfect storm may lead to many consumers being priced out of essential healthcare coverage, forcing a reevaluation of their insurance options as financial pressures mount. Click here to learn more

The mega backdoor Roth IRA is a strategy ‘highly compensated employees’ or HCEs at Conagra Brands can use to increase retirement savings and shelter investment growth from taxes in retirement.

When circumstances are right and the stars align, this little-known strategy can be a smart way to tuck extra money into a Roth IRA to use for retirement or to save for your heirs.

Let’s start with the basics.

Retirement Savings 101

When you choose to make Roth contributions, you’ll contribute to your account with after-tax dollars. This means you will pay taxes on the money the year it is earned, and you won’t benefit from any tax advantages at the time you contribute.

In exchange, you won’t owe any taxes on your contributions or when you withdraw in the future. Additionally, as long as your Roth contributions have “aged” for at least five years, any earnings your contributions accrue won’t be taxed either. (That said, if Conagra Brands made any contributions, you’ll still need to pay taxes on those when you withdraw, since you won’t have paid taxes on those contributions yet. Contributions made by Conagra Brands are always traditional, pre-tax contributions.)

The 2022 limits have changed since last year. A person younger than 50 can contribute $20,500 into their 401(k). People who are aged 50 and older can contribute an additional $6,500 annually in catch-up contributions, for a total of $27,000 into their 401(k). Limits for total employee and employer contributions have also increased over the past year and are $61,000 (or $67,600 for people 50 and older).

Some company 401(k) plans are structured to allow for additional after-tax contributions, which can create a “mega backdoor” through which you can invest up to an extra $40,500 into your Roth IRA or Roth 401(k).

We’ll walk you through how it works and if it’s a good move for you, but know now that this is complicated and advanced financial planning with the potential for some unexpected tax bills—definitely work with an expert on this one.

Is a Mega Backdoor Roth Possible ?

There are two prerequisites — if you’re unsure about either, double-check with HR or contact your Conagra Brands-plan administrator.

Your 401(k) plan must allow for after-tax contributions. Not all 401(k) plans let you make after-tax contributions. Quick vocab lesson: after-tax is an entirely different contribution category from pre-tax and post-tax. (We’ve mentioned before how after-tax and post-tax used to be conflated.)
Your 401(k) plan must also allow for in-service withdrawals or in-plan Roth conversions. In-service withdrawals (also called in-service distributions) enable you to take money out of your 401(k) while you’re still employed with Conagra Brands and roll it into a Roth IRA. In-plan conversions let you move your after-tax contribution into Roth dollars within the 401(k).

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Mega Backdoor Roth IRA Pros

Due to the dollar amounts, this strategy can really move the needle in your overall retirement savings and tax-free Roth asset bucket. Even if Conagra Brands only permits this for a few years, it can still be worthwhile, assuming it makes sense in the context of the rest of your financial situation
If you can keep the entire mega backdoor Roth strategy in-plan, it can be fairly easy to execute for the individual.

Mega Backdoor Roth IRA Cons

Most individuals don’t have the flexibility to maximize the benefits of this strategy, especially on an after-tax basis.
Even when individuals have the means to use this strategy, it might not work at the plan level. Essentially, your Conagra Brands-sponsored 401(k) plan must pass various testing requirements. This includes participation from ‘highly compensated employees’ or HCEs relative to ‘non-highly compensated employees’ or NHCEs. If only the HCEs are making after-tax contributions (as stands to reason), the plan may be forced to return a portion of the contributions to HCE participants if it fails the test.

How a Mega Backdoor Roth Works

The real limit on a contribution plan such as a 401(k) is actually pretty high: this year, it’s $61,000 (or $67,500 for people 50 and older). That max amount includes the $20,500 (or $27,000) employee elective deferral amount we’re most familiar with, as well as any matching contributions from Conagra Brands, profit-sharing, and your after-tax contributions.

When you use the mega backdoor strategy, you take all the money from the after-tax contribution to your 401(k) and quickly transfer it into either a Roth IRA or to Roth dollars within your 401(k) before it can accrue investment earnings. There are also some instances where a company’s highest earners wouldn’t be able to max out their after-tax contributions due to IRS nondiscrimination tests . If available once it’s in a Roth-style account, the money will grow tax- free instead of tax- deferred , which means you won’t end up owing taxes on those earnings, and neither will your beneficiaries. Pretty nifty.

Speed is key, which is why in-service withdrawals or in-plan conversions is one of the requirements. You don’t want to have to wait until you leave Conagra Brands to move that chunk of money.

NOTE: If you leave it as an after-tax contribution in your 401(k), it’s going to be accruing taxable earnings the whole time.

Doing the process manually is complicated, and we are here to assist.

Say you miss an in-service withdrawal or in-plan conversion and you’ve accrued some earnings. Not the end of the world. The IRS confirms you can shift the contribution portion into a Roth IRA and the gains portion into a traditional IRA, which takes some work, but you’ll preserve your contribution’s beneficial tax status.

Calculate Your After-Tax Contribution Amount

You’ll notice that we keep saying “up to $40,500” in additional contributions—that’s because everyone’s after-tax amount could be different. If you’re trying to make up the difference between the $20,500/$27,000 standard employee contribution amount and the $61,000/$67,500 max limit, you have to account for any matching by Conagra Brands and profit-sharing along the way.

Let’s walk through a couple of simple scenarios.

Henry, 57

Max limit, based on age: $67,500

Salary: $100,000

Profit-sharing: 25 percent of salary

At 56, Henry has higher limits. If he maxes out his $27,000 employee contribution and gets $25,000 from his employer, Henry has room for $15,500 in after-tax contributions.

Nancy, 44

Max limit, based on age: $61,000

Salary: $100,000

Employee matching: Up to 3 percent of salary

If Nancy maxes out the $20,500 employee contribution, and her company matches $3,000, that means Nancy has room for $37,500 in after-tax contributions.

Jason (60 years old)

Max limit, based on age: $67,500

Contributes the maximum annual amount to both his 401(k) ($27,000 in 2022) and his IRA ($7,000 in 2022). He is looking to save even more by using a mega backdoor Roth IRA contribution, but he wants to know the maximum amount of after-tax contributions he can put into his 401(k) plan. If his total annual employer matching contributions are $10,000 in 2022, Jason can make after-tax contributions of up to $30,500 this year. Assuming his 401(k) plan has the appropriate provisions, John would transfer his after-tax contributions to his Roth 401(k) or Roth IRA, allowing him to place an additional $30,500 in a Roth account receiving tax-free growth.

One caveat: Some 401(k) plans do limit the amount you can contribute after-tax, so even if you have room to contribute more, you might not be able to. There are also some instances where a company’s highest earners wouldn’t be able to max out their after-tax contributions due to IRS nondiscrimination tests , which are designed to ensure those earning the most aren’t saving at a higher rate than everyone else in their organization.

And it bears repeating after-tax contributions aren’t deductible, and if left in the 401(k) plan instead of being shifted into a Roth-style account, the earnings could be taxed when withdrawn.

When you should consider a mega backdoor Roth

Mega backdoor Roths are an interesting option for high earners at Conagra Brands looking for additional ways to save for retirement or for their heirs. It’s worth exploring with your financial planner if:

You’ve maxed out your personal 401(k) contributions. That comes first. When you’ve maxed out your contributions and still have more to save, you can consider going for a mega backdoor strategy.
You have additional funds you want to save for retirement. Mega backdoor Roths are a great way to store away cash every year. Still, there are many other financial strategies to consider, and things like time horizon and liquidity are important considerations.

How does Conagra Brands, Inc. ensure that employees understand their retirement benefits, particularly the nuances of the Conagra Foods Inc. Pension Plan and the historical obligations from the Beatrice Retirement Income Plan (BRIP)? Are there specific communication strategies or resources provided to employees to navigate their eligibility and benefits?

Conagra Brands has not provided consistent documentation of the Beatrice Retirement Income Plan (BRIP), as evidenced by a lost BRIP Plan document, which has created confusion among former Beatrice employees. Conagra relies on internal committees like the Conagra Brands Employee Benefits Administrative Committee to oversee the administration of the Conagra Foods Inc. Pension Plan and the historical obligations from BRIP. However, there are allegations in the class action that Conagra has failed to communicate certain benefit entitlements, particularly the age at which unreduced benefits should commence(Conagra_Brands_Inc_02-1…).

In light of regulatory compliance, what measures does Conagra Brands, Inc. take to maintain the integrity and security of pension plan documents, especially considering the historical loss of the BRIP Plan document? How do the missing documents impact employee knowledge of their benefits?

The loss of the BRIP Plan document represents a significant failure in document retention and regulatory compliance. Under ERISA, Conagra is required to maintain and distribute these documents upon request. The missing BRIP documents have caused discrepancies in the administration of retirement benefits, particularly regarding the age of eligibility for unreduced benefits. Conagra has been criticized for not informing employees that these documents were lost, leading to confusion and underpayment of benefits(Conagra_Brands_Inc_02-1…).

What resources does Conagra Brands, Inc. offer to its employees who have questions about their pension benefits or discrepancies that may arise from the transition from the Beatrice Retirement Income Plan to the Conagra Foods Inc. Pension Plan? How can employees best utilize these resources?

Conagra directs employees to contact the Plan service center for inquiries related to their pension benefits. However, based on the complaints filed in court, there have been issues with transparency and the accessibility of important plan documents, including the BRIP. Employees have had to appeal their benefit decisions and deal with insufficient guidance on navigating the discrepancies between the old BRIP and the Conagra Plan. Resources like benefit calculators and service centers have sometimes provided inaccurate or incomplete information(Conagra_Brands_Inc_02-1…).

How does Conagra Brands, Inc. handle the potential discrepancies regarding the pension benefits related to the age eligibility for receiving unreduced benefits in the context of both the Conagra Plan and the Beatrice plan? What steps have been taken to prevent similar issues in the future?

Conagra has been handling discrepancies poorly, particularly around the age at which participants in the BRIP are entitled to receive unreduced benefits. The company's adjustment of the eligibility age from 60 to 65 without properly consulting or notifying employees has led to underpayment of benefits. The ongoing class action lawsuit seeks to address these discrepancies and prevent future issues by clarifying benefit entitlements under the terms of both plans(Conagra_Brands_Inc_02-1…).

Can you elaborate on the process that Conagra Brands, Inc. utilizes to communicate with employees about plan amendments and to clarify their rights under the Conagra Foods Inc. Pension Plan? What specific improvements have been made to this communication strategy in recent years?

The communication process regarding plan amendments at Conagra has been criticized as insufficient, particularly concerning the transition from the BRIP to the Conagra Plan. Employees have filed complaints about not receiving adequate notice of important changes, such as the shift in eligibility age for unreduced benefits. Conagra has failed to provide clear documentation, leading to confusion among employees. There is no evidence of significant improvements in recent years(Conagra_Brands_Inc_02-1…).

How does Conagra Brands, Inc. ensure compliance with the Employee Retirement Income Security Act (ERISA), especially regarding the fiduciary duties of the Conagra Brands Employee Benefits Administrative Committee? What protocols are in place to guarantee that employeesâ€™ rights are consistently protected?

Conagra's compliance with ERISA has been challenged in court, with allegations of fiduciary breaches related to the loss of critical plan documents like the BRIP. The Conagra Brands Employee Benefits Administrative Committee is responsible for maintaining the integrity of the pension plan, but the loss of documents and failure to notify employees of their rights raise questions about the adequacy of these protocols. The lawsuit highlights a need for improved oversight and adherence to ERISA's fiduciary requirements(Conagra_Brands_Inc_02-1…).

What options are currently available for former Beatrice employees and other participants in the Conagra Foods Inc. Pension Plan to claim benefits they believe they are entitled to? How does Conagra Brands, Inc. facilitate this process?

Former Beatrice employees can contact the Pension Service Center to inquire about their benefits and initiate claims. However, the process has been complicated by missing documentation and conflicting information about eligibility. Some employees have been forced to file legal claims to recover benefits owed to them, as in the case of the ongoing class action lawsuit. The lack of clear and accessible resources has made it difficult for employees to navigate the process effectively(Conagra_Brands_Inc_02-1…).

In what ways does Conagra Brands, Inc. provide support or guidance for employees approaching retirement, particularly in understanding the timelines and responsibilities associated with electing benefits from the Conagra Foods Inc. Pension Plan?

Conagra provides online calculators and service center assistance for employees approaching retirement, but these tools have proven unreliable for some participants. Employees have reported being unable to calculate their benefits accurately or being told they were ineligible for benefits before age 65, despite the terms of the BRIP allowing benefits to begin at age 60. The class action complaint highlights deficiencies in the guidance provided to employees regarding their benefits(Conagra_Brands_Inc_02-1…).

How can employees at Conagra Brands, Inc. contact the Employee Benefits Administrative Committee for inquiries related to their benefits? What are the most efficient avenues for addressing concerns about the Conagra Foods Inc. Pension Plan or the transitions from the Beatrice plan?

Employees can contact the Plan service center for inquiries related to their benefits, but accessing the Employee Benefits Administrative Committee directly appears to be more challenging. The lawsuit indicates that employees seeking to address discrepancies with their benefits have not received timely or effective communication from the committee, often requiring legal action to resolve their concerns(Conagra_Brands_Inc_02-1…).

How does Conagra Brands, Inc. evaluate its pension plan's performance and benefits offerings in relation to industry standards? What methods are used to ensure the company remains competitive while protecting employee benefits under the Conagra Foods Inc. Pension Plan?

There is little publicly available information regarding how Conagra evaluates its pension plan's performance against industry standards. The company's handling of historical pension obligations, particularly from the Beatrice acquisition, suggests that its methods for protecting employee benefits have been insufficient. Ongoing litigation regarding underpayment of benefits and loss of critical documents indicates that the company may need to improve its evaluation methods and compliance efforts to remain competitive(Conagra_Brands_Inc_02-1…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Conagra Brands announced a restructuring plan aiming to streamline operations and reduce costs. This includes layoffs impacting various departments and potential changes to employee benefits.

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For more information you can reach the plan administrator for Conagra Brands at 222 W. Merchandise Mart Plaza Chicago, IL 60654; or by calling them at (312) 549-5000.