Your Roth Solo 401k is already included as a sub-account of the Solo 401k we set up for you so this will be easy to do!
Use our contribution calculator at solo401k.com/calculator to determine your contribution amount. Roth contributions must come from your business income, just like pre-tax contributions.
All of our Solo 401k accountholders are given a contribution guide to walk you through how to determine and document your contributions.
Step 1: Determine your Roth Contribution amount
Step 2: Have your bookkeeper and/or CPA document the contribution in your business and 401k plan internal notes and records
Step 3: Deposit your Roth contributions into your Solo 401k trust bank account
Keep it clean:
Accurate and thorough record-keeping is required to distinguish between your Roth and non-Roth funds in the Solo 401k.
It’s possible to have one bank account for your Solo 401k funds, even if the account contains pre and after tax contributions. Make sure your CPA is keeping excellent records to keep track of which funds are Roth and which are pre-tax contributions.
Some accountholders choose to have two separate bank accounts for ease of bookkeeping: 1 for Roth funds, 1 for pre-tax funds. Do what works best for you and your CPA to keep the books clean!
We recommend documenting each contribution so you have excellent records in your Solo 401k plan.
Click here to access the Solo 410k contribution form. Remember to share this completed form with our CPA for excellent bookkeeping!
More information regarding Designated Roth Accounts, may be found here: https://www.irs.gov/retirement-plans/designated-roth-accounts-contributing-to-a-designated-roth-account