Solo 401(k) / Mega Backdoor Roth
Maximize retirement contributions and convert high after-tax amounts to Roth for tax-free growth
How It Works
As a self-employed individual or business owner, you establish a Solo 401(k) plan
You contribute up to $69,000 per year (2024) via employee deferrals and employer profit-sharing
You make after-tax contributions beyond the $69K limit (up to $69K total including employer)
You immediately convert after-tax contributions to Roth via in-plan conversion (mega backdoor Roth)
Key Benefits
Large Contributions
Shelter up to $69K+ per year from current and future taxes
Tax-Free Growth
Roth conversions grow tax-free and distribute tax-free in retirement
Asset Protection
Retirement accounts offer strong creditor protection in most states
Who This Is For
Self-employed professionals or business owners with $200K+ in annual income who want to maximize tax-advantaged retirement savings. Ideal for those with 1099 or Schedule C income.
By The Numbers
$69K+
Annual Contribution Limit
0%
Tax on Roth Growth
$500-2K
Setup Cost
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