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 Contributions tab and click 'Update Limit' on the top right
Step 2: Select if you are making updates to the election amount or if you need to add an election type
If you clicked 'change election type' you'll be brought to this screen where you can select which type of Solo 401k contributions you plan to make:
Step 3: If you chose an option that included Mega Backdoor Roth this next step will ask if you want do do a Mega Backdoor Roth conversion.
If you're unsure, you can learn more about the Mega Backdoor Roth strategy and its advantages here.
If you select yes, you'll also need to select the destination account for the Mega Backdoor Roth funds:
Step 4: Tell us about your self-employed gross income and expenses, as well as if you've contributed any dollars to other 401k plans during the tax year
You'll then be brought to a screen that shows your maximum contribution election limit based on the inputs you entered on the previous screen
Step 6: 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, click 'Continue'.
Step 7: Click Finish
Your updated election is saved and you'll see the above confirmation screen.