Voluntary After-Tax contributions made before employee contributions?

[Tim F.]

Do I need to max out my employee contributions to my Roth Solo 401k before depositing money into my after-tax account? In other words let’s say I want to contribute $25,000 for 2022. Can I just write one check for $25,000 to the after-tax and then rollover the funds to my Roth account? Or do I need to do $20,500 as employee and report on W2, then $4,500 to after-tax and roll it over. Thanks.

Tim F.

Contact

[Mark Nolan]

Yes, just voluntary after-tax contributions may be made and then converted to the Roth solo 401k. The solo 401k rules don’t require pretax or roth contributions to first be made before making voluntary after-tax contributions.

Mark Nolan

Compliance Officer

Contact

1-800-489-7571 www.mysolo401k.net