How can I do a Solo 401k Mega Backdoor Roth Conversion?

A Mega Backdoor Roth conversion consists of many moving parts and can seem confusing if you’re attempting to do one for the first time. At Carry, we simplified it so that you can complete it in just a few clicks! What is a Mega Backdoor Roth and is it right for you? Read this before getting started.

Step 1: Open your Carry Solo 401k Roth account or your Carry Roth IRA

The first step is to open the Roth account that you want your Mega Backdoor Roth funds to land in. This can be a Solo 401k Roth account or a Roth IRA.

Opening a Solo 401k Roth account:

Opening a Roth IRA:

Step 2: Elect to increase your Roth contribution limit by unlocking a Mega Backdoor Roth if you've not already done so

In your Solo 401k account, click "Contributions", then "Update Limit"Then

Continue through this flow and enter the amount you would like to contribute towards your Mega Backdoor Roth bucket.

Step 3: Go to the Investments page of your Solo 401k Roth account or your Roth IRA

Step 4: Click "Unlock" in the floating banner

If you're in your Solo 401k account, make sure you're selecting your Roth account on the left hand side menu.

Step 5: In the Unlock flow, confirm the Roth account that you want your Mega Backdoor Roth funds to land in

Continue through this flow to complete unlocking your automatic Mega Backdoor Roth contributions:

Step 6: Make your first Mega Backdoor Roth deposit

Go into your Solo 401k account and click "Deposit"

Choose Mega Backdoor Roth as the destination account:

Don’t forget to report the conversion in your 1099-R

Mega Backdoor Roth conversions must be reported to the IRS using the 1099-R form. Learn more about the 1099-R here.