2026 Guide: How to Upgrade Guideline/Gusto Solo 401k to Allow Mega Backdoor Roth
Watch: Step-by-step walkthrough of upgrading your Guideline or Gusto Solo 401k to unlock the Mega Backdoor Roth
With Gusto’s acquisition of Guideline, many self-employed individuals are reevaluating their Solo 401k options. The good news? You can upgrade your existing Guideline or Gusto Solo 401k to a fully featured plan through My Solo 401k Financial—keeping your Gusto payroll while unlocking the most powerful retirement savings strategies available to solopreneurs.
Why Upgrade Your Guideline or Gusto Solo 401k?
Guideline and Gusto’s Solo 401k plans are built exclusively for their ecosystem—meaning they only open accounts for clients using their proprietary plan documents. Think of your plan document as the “brain” of your retirement account: it defines what features you can access. Upgrading to a plan provided by My Solo 401k Financial opens the door to:
- Mega Backdoor Roth contributions (up to $72,000+ in 2026)
- Solo 401k participant loans (up to $50,000)
- In-plan Roth conversions
- Alternative investments (real estate, cryptocurrency, precious metals, private equity)
- Freedom to choose your bank or brokerage (Fidelity, Schwab, etc.)
- Ongoing compliance support including Form 5500-EZ and Form 1099-R preparation
Solo 401k Eligibility Requirements (2026)
Before upgrading, it’s worth confirming you still meet the two basic eligibility requirements for a Solo 401k:
1. Self-Employment Income
You must have earned self-employment income reported on your taxes. This can come from:
2. No Full-Time W-2 Employees
There can be no non-owner, non-spouse full-time W-2 employees working for any business owned by you or your spouse. Full-time is defined as:
- 1,000 hours or more per year with a year of service, OR
- 500 hours or more per year for two consecutive years
The Upgrade Process: Restating Your Solo 401k
Upgrading from a Guideline or Gusto Solo 401k to a My Solo 401k Financial plan is technically called a restatement. Think of it like a “cut and paste”—your existing Guideline/Gusto plan documents are replaced with IRS-approved plan documents from My Solo 401k Financial that include all the advanced features.
Unlocking the Mega Backdoor Roth in Your Solo 401k
The Mega Backdoor Roth is one of the most powerful retirement strategies available to solopreneurs. It allows you to contribute up to $72,000 in 2026 (or more if you’re age 50+) into a Roth account where the funds grow tax-free. Unlike a traditional Roth IRA, there are no income limits—high earners can fully participate.
Here’s how the Mega Backdoor Roth works inside a properly drafted Solo 401k:
- Make voluntary after-tax contributions to your Solo 401k
- Convert those after-tax dollars to Roth status (in-plan Roth conversion or transfer to a Roth IRA)
- Enjoy tax-free growth potential
Learn more about the mechanics on our Mega Backdoor Roth Solo 401k page.
Additional Advanced Features Unlocked by Upgrading
Solo 401k Participant Loan
Borrow up to 50% of your Solo 401k balance, not to exceed $50,000, for any purpose whatsoever. Loans are not subject to taxes or penalties when properly documented and repaid. My Solo 401k Financial prepares the loan documents within one business day at no additional charge.
Alternative Investments
Beyond traditional stocks, bonds, and mutual funds, your upgraded Solo 401k can invest in:
- Real estate (residential, commercial, raw land)
- Cryptocurrency
- Precious metals
- Private equity
- Pre-IPO stock
- Notes and trust deeds
Ongoing Compliance Support
Once your Solo 401k plan value (including any defined benefit plan) exceeds $250,000, an annual Form 5500-EZ filing is required. My Solo 401k Financial prepares and electronically files this form at no additional charge. We also handle Form 1099-R preparation for distributions, rollovers, and Mega Backdoor Roth conversions. For both 5500-EZ and 1099-R support, clients (or their advisors) need to request it in a timely fashion.
Claim Up to $1,500 in SECURE Act Tax Credits
My Solo 401k Financial was the first Solo 401k plan provider to offer a plan that enables the solopreneur to claim $1,500 in tax credits authorized by Congress under the SECURE Act—$500 per year for three consecutive years.
- $500 per year × 3 years = $1,500 total
- Dollar-for-dollar reduction in tax liability
- Available for new and upgraded existing Solo 401k plans
- Plan must include an automatic enrollment feature (drafted by default in our documents)
- Solopreneur can opt out of the default 3% contribution percentage and still claim the credit
The credit more than covers our fees for the first seven years. We charge $650 as an initial fee (which includes the $525 establishment fee plus the first $125 annual fee). Starting 12 months later, the annual fee is just $125.
Freedom of Platform: Open Accounts Anywhere
Unlike Guideline or Gusto—which lock you into their interface—My Solo 401k Financial does not have access to or hold your retirement funds. Instead, we help you open accounts at the bank or brokerage of your choice. You can have both bank and brokerage accounts, and you’re free to choose what works best for you.
Frequently Asked Questions
Can I keep using Gusto for payroll after upgrading?
Yes. The plan document and the payroll service are separate. You can continue using Gusto for payroll while having your Solo 401k accounts at Fidelity (or another custodian) governed by My Solo 401k Financial’s advanced plan documents.
Will I lose my existing Solo 401k balance?
No. The restatement process includes transferring your existing Guideline/Gusto Solo 401k cash and assets to the new accounts governed by the upgraded plan documents. We guide you through the transfer process step by step.
How long does the upgrade take?
We prepare and deliver restated plan documents within the same business day your application is submitted and payment is made. Account opening and asset transfer timelines depend on the custodian, but the overall upgrade is typically quick and straightforward.
Next Steps:
