Business owner wants to maximize personal retirement savings via Mega Backdoor Roth 401k but is unsure if funding extra contributions for themselves violates top-heavy rules or requires equal bonuses for all employees.
Current retirement plan administration software does not provide clear guidance on complex compliance testing (like top-heavy rules) when using after-tax contributions for highly compensated employees, forcing the owner to rely on costly CPA advice or risk errors.
Workarounds Described
- posts question on Reddit seeking advice from peers
- will eventually pay a CPA hundreds of dollars to run manual calculations
Implied Software Gaps
- Automated compliance testing software that simulates contribution strategies and provides clear, actionable results without requiring manual CPA consultation
ComplyCheck 401k
ComplyCheck 401k is a SaaS platform that integrates with payroll and 401k providers to automatically simulate compliance tests—including top-heavy, ADP/ACP, and nondiscrimination tests—for various contribution strategies like the Mega Backdoor Roth. It shows in real-time whether a proposed contribution plan is allowed without triggering penalties or forcing extra contributions to lower-paid employees. Unlike generic plan documents, ComplyCheck provides personalized, actionable guidance for business owners.
- Real-time compliance simulation for Mega Backdoor Roth contributions
- Integration with popular 401k recordkeepers (Vanguard, Fidelity, etc.)
- Dashboard showing safe harbor thresholds and top-heavy impact
- Alerts when a proposed contribution strategy would require additional costs (e.g., bonuses to non-HCEs)
Existing Solutions Mentioned
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