The mega backdoor Roth is a strategy that allows you to put more money into your Roth solo 401k than is typically allowed.

Using the mega backdoor Roth, it’s possible to put in as much as $61,000 ($67,500 if age 50+) to your Roth solo 401k for 2022 and $66,000 ($73,500 if age 50+) for 2023.

How do I do the mega backdoor Roth with Ocho?

To implement the mega backdoor Roth, you’ll need to make use of our optional after-tax account (not to be confused with the post-tax Roth account).

  1. First, max out your employee Roth solo 401k contributions – $20,500 ($27,000 if age 50+) for 2022 – $22,500 ($30,000 if age 50+) for 2023.

  2. Next, contribute up to the remaining amount (up to $40,500 for 2022 and $43,500 for 2023) into the after-tax account.

  3. After making your contribution to the after-tax account, we’ll immediately convert the after-tax funds into your Ocho Roth Solo 401k.

Both Roth and optional after-tax contributions are post-tax, so you pay all the normal income taxes on them before contributing them to the plan.

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