At a glance
- Eligible participants can currently contribute up to $72,000 a year through employee contributions, employer matches and voluntary after-tax contributions, according to PLANADVISER.
- Betterment plans to extend the capability to employer-sponsored 401(k) plans in the coming months.
- EIG's coverage-gap estimate put 15 million of 76.2 million uncovered workers as self-employed.
Betterment is adding mega-backdoor Roth capabilities to its solo 401(k) plans, making the feature available to self-employed customers and advisers who sell solo plans through Betterment Advisor Solutions, PLANADVISER reported.
Eligible participants can currently contribute up to $72,000 a year through employee contributions, employer matches and voluntary after-tax contributions, according to PLANADVISER. Customers start the Roth conversion inside their Betterment account and receive the associated tax forms through the platform. Advisers get automated tools to track contributions against annual limits, and contributions, conversions and 1099-R reporting all sit inside the platform.
"The next generation of workers is redefining what a career looks like, and retirement savings options need to evolve alongside them," said Sarah Levy, Betterment's CEO, in a statement. She said the aim is to make it easier for self-employed investors to use available contribution limits and build more tax-advantaged savings.
Betterment plans to extend the capability to employer-sponsored 401(k) plans in the coming months. The solo 401(k) product launched in April.
EIG's coverage-gap estimate put 15 million of 76.2 million uncovered workers as self-employed.
Reported by the Plans & Sponsors desk from PLANADVISER and Retirement Capital Daily archive. Published . Corrections