Harvard Law Attorney George Blower leads an in-depth discussion of the 2023 and 2024 Mega Backdoor Roth Self-Directed Solo 401k Contribution Limits for self-employed businesses taxed as Sole Proprietor, Single-Member LLC,
Schedule C/1099-NEC Independent Contractor including:

*​**Free Solo 401k*** Learn how opening a Solo 401k in 2024 will qualify you to claim a $1500 tax credit including a $500 credit on your 2024 taxes and then another 2 years after that for a total of $1500.

Register below for access to LIVE session on 4/5/2024 @ 1 PM Pacific/4 PM Eastern [Sign Up to get a Recording link if you can’t make the live session.]

To learn more about the tax credit:

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In recent years, the Mega Backdoor Roth Solo 401k has gained popularity among sole proprietors, single-member LLCs, and individuals receiving income from 1099-NEC forms. This unique retirement savings strategy allows these self-employed individuals to contribute significantly more to their Roth accounts than traditional contribution limits would otherwise allow. With the new year upon us, it’s important for those who qualify to consider taking advantage of this strategy in 2023 and beyond.

The Mega Backdoor Roth Solo 401k is a variation of the traditional Solo 401k plan designed specifically for self-employed individuals. It allows for after-tax contributions above and beyond the standard limit set by the IRS, currently set at $19,500 for individuals under the age of 50. For those over the age of 50, an additional catch-up contribution of $6,500 is allowed, bringing the total to $26,000. However, with the Mega Backdoor Roth strategy, individuals can contribute up to a much higher limit, currently set at $58,000 in 2023 and expected to increase in the upcoming years.

To take advantage of the Mega Backdoor Roth Solo 401k strategy, individuals must ensure that their plan allows for after-tax contributions and in-service withdrawals. They must also have the financial means to make significant contributions to their retirement account. By making after-tax contributions to their Solo 401k, individuals can convert these funds into a Roth IRA, where they can grow tax-free until retirement.

For those considering the Mega Backdoor Roth Solo 401k strategy in 2023 and beyond, it’s important to consult with a financial advisor or tax professional to ensure compliance with IRS regulations and to maximize the benefits of this retirement savings strategy. By taking advantage of the higher contribution limits and tax-free growth potential of the Roth IRA, self-employed individuals can secure their financial future and take control of their retirement savings.

In conclusion, the Mega Backdoor Roth Solo 401k is a powerful retirement savings strategy for sole proprietors, single-member LLCs, and individuals receiving income from 1099-NEC forms. By making after-tax contributions and converting them to a Roth IRA, individuals can significantly boost their retirement savings and enjoy tax-free growth potential. As we enter 2023 and beyond, self-employed individuals should consider the Mega Backdoor Roth strategy as a way to secure their financial future and take control of their retirement savings.