How to update your Solo 401k Election
In order to be able to contribute to your Solo 401k for any year, you'll want to have an election for the year you're trying to contribute to. Your election can be edited as your financial circumstances change. If you need to make an election or edit your election, follow these steps to do so:
Step 1: Navigate to your Solo 401k
Step 2: Navigate to the Contributions tab
Step 3: Click "Update Limit"
Step 4: Select your savings goals
Choose whether you'd like to save the most taxes today, maximize your Roth contributions, or do a combination of both. Then, click Next.
Step 5: Decide if you'd like to increase your Roth contribution limit by unlocking Mega Backdoor Roth contributions
If you're unsure, you can learn more about the Mega Backdoor Roth strategy and its advantages here.
Step 6: Tell us about your business's gross income and expenses, as well as if you've contributed any dollars to other 401k plans during the tax year
Step 7: Enter how much you would like to contribute towards each category
The contribution limit for each category is dynamic and will change as you input numbers into each field. When you're finished with entering the amounts you'd like to contribute for each category, electronically sign the form and click Next.
Step 8: Click Finish
Your election is updated saved.
