Robinhood Mega Backdoor Roth IRA: How to Contribute $70k to Roth IRA in 2025

Watch: Step-by-step breakdown of using a Solo 401(k) with Robinhood to maximize Roth IRA contributions

Overview: $70k to Roth IRA via Solo 401(k)

Using a Solo 401(k) that allows voluntary after-tax contributions and in-service distributions, self-employed individuals can contribute up to $70,000 to a Roth IRA—including one at Robinhood—in 2025.

Step-by-Step Process

Step 1: Open a Solo 401(k) That Supports Mega Backdoor Roth

• Ensure the plan allows voluntary after-tax contributions and in-service rollovers.
• My Solo 401k Financial offers such a plan and provides compliance and reporting support.

Step 2: Fund the After-Tax Solo 401(k) Sub-Account

• Make voluntary after-tax contributions up to the overall limit ($70,000 for 2025).
• Contributions can come from business or personal accounts.
• These are not reported on IRS forms at this stage.

Step 3: Transfer Funds to a Roth IRA (e.g., Robinhood)

• Consider first transferring to a Roth IRA at the same brokerage (e.g., Fidelity), then ACAT to Robinhood.
• This allows smooth electronic processing and reduces delay.
• The transfer is reportable on IRS Form 1099-R, which My Solo 401k Financial prepares as an optional free service (no additional charge).

Key Takeaways

1. You can use a Solo 401(k) with after-tax contributions to fund a Roth IRA at Robinhood.
2. The limit is up to $70,000 in 2025, depending on compensation and existing plan contributions.
3. Use a provider that supports in-service distributions and handles 1099-R forms, such as My Solo 401k Financial.
4. Transferring first to a same-brokerage Roth IRA (then to Robinhood) may streamline the process.

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