Watch: Guide to unlocking advanced Solo 401k features on the Altruist platform

The Challenge: Are Your Self-Employed Clients Maximizing Their Retirement Savings?

As a financial advisor on the Altruist platform, you understand the power of the Solo 401k for self-employed individuals and small business owners. But are your clients truly maximizing their retirement savings potential? The standard Solo 401k offered on most platforms has significant limitations that leave money on the table.

The good news? The plan can be opened at My Solo 401k Financial with accounts at Altruist to unlock advanced Solo 401k features that can transform your client relationships and dramatically increase retirement contributions. We’re talking about features like the Mega Backdoor Roth, comprehensive 5500-EZ filing support, eligibility for the $1,500 tax credit, and much more.

Understanding the “Basic” vs. “Advanced” Solo 401k on Altruist

The Standard Altruist Solo 401k: What’s Missing?

While the basic Solo 401k available through standard providers offers valuable benefits, it often comes with significant limitations that restrict your clients’ retirement savings potential:

The My Solo 401k Financial Difference on Altruist

When your clients open a solo 401k with My Solo 401k Financial, your clients gain access to a fully featured Solo 401k plan while their accounts can be opened on the Altruist platform.

Feature Deep Dive: What My Solo 401k Financial Unlocks on Altruist

1. Mega Backdoor Roth: Supercharge Your Clients’ Roth Contributions

The Mega Backdoor Roth is one of the most powerful—yet underutilized—retirement savings strategies available to high-income self-employed individuals. With My Solo 401k Financial’s plan documents on Altruist, your clients can contribute significantly more to their Roth IRA and Roth Solo 401k than traditional contribution limits allow.

How the Mega Backdoor Roth Works:

In a standard Solo 401k, participants are limited to:

• Employee Elective Deferrals: $23,500 in 2025 ($31,000 if age 50+ OR $34,750 if age 60-63)
• Employer Profit-Sharing Contributions: Up to 20% or 25% of compensation (depending on how self-employed business is taxed)
• Total Contribution Limit: $70,000 in 2025 ($77,500 if age 50+ OR $81,250 if age 60-63)

However, with My Solo 401k Financial’s advanced plan documents, clients can make voluntary after-tax contributions up to the total limit, then immediately convert these funds to Roth through an in-plan conversion or rollover to a Roth IRA.

How My Solo 401k Financial Facilitates the Mega Backdoor Roth on Altruist:

• Specially Drafted Plan Documents: Our plan documents explicitly allow for voluntary after-tax contributions
• In-Plan Roth Conversion Language: Plans include provisions for immediate in-plan Roth conversions
• Retirement Trust Account Setup: Ensures the Altruist account structure supports these advanced contribution types

2. 5500-EZ Compliance Support

One of the most overlooked—and potentially costly—aspects of Solo 401k ownership is the Form 5500-EZ filing requirement. Many self-employed individuals are unaware of this obligation until they face IRS penalties.

The $250,000 Threshold

The Form 5500-EZ is an annual return/report that provides the IRS and Department of Labor with critical information about the plan’s financial condition, investments, and operations. Once a Solo 401k (including the value of any defined benefit plan (if any)) crosses the $250,000 asset threshold, filing becomes mandatory every year thereafter.

My Solo 401k Financial’s 5500-EZ Support

Unlike basic Solo 401k providers who leave clients to figure out compliance on their own, My Solo 401k Financial provides comprehensive 5500-EZ filing support as an optional free service.

3. The $1,500 Solo 401k Tax Credits

Thanks to the SECURE Act, small businesses and self-employed individuals can now claim a valuable tax credit when establishing a new Solo 401k plan that includes an auto-enrollment feature. This credit provides immediate financial benefit and makes the decision to set up an advanced plan even more attractive.

Understanding the Tax Credit

How My Solo 401k Financial Ensures Tax Credit Eligibility

Not all Solo 401k plans are structured to take advantage of this tax credit. My Solo 401k Financial plans are specifically designed for credit eligibility.

The Retirement Trust Account Advantage

The “Retirement Trust Account” structure that My Solo 401k Financial establishes on Altruist is critical for alternative investment flexibility. This account type allows the Solo 401k trust to be the legal owner of assets, enabling direct ownership of alternative investments while maintaining IRS compliance.  Check out the video linked above for guidance on how to open Retirement Trust Accounts at Altruist.