New offering helps eligible self-employed investors save more for retirement

NEW YORK, Oct. 20, 2026 /PRNewswire/ — Betterment, a trusted wealth and savings platform, today introduced mega backdoor Roth capabilities for its solo 401(k) offering, increasing retirement savings potential for eligible self-employed investors. The new capability is available to customers investing directly with Betterment and to financial advisors offering solo 401(k)s to their clients through Betterment Advisor Solutions.

A mega backdoor Roth is an advanced retirement strategy that allows participants in eligible 401(k) plans to make additional after-tax contributions that they can then convert to Roth. This lets them save beyond the regular employee and employer limits while staying within the plan’s overall annual limit—up to $72,000 in 2026, excluding eligible catch-up contributions.

“The next generation of workers is redefining what a career looks like, and retirement savings options need to evolve alongside them,” said Sarah Levy, CEO of Betterment. “Entrepreneurs, freelancers and independent professionals deserve a seamless way to maximize their retirement savings. By bringing mega backdoor Roth capabilities to our solo 401(k), we’re making it easier for self-employed investors to make the most of available contribution limits and build more tax-advantaged savings.”

Eligible customers can make an after-tax contribution online and receive a notification when the money is ready to convert. They can then initiate the Roth conversion within their Betterment account. Betterment provides the associated tax forms, helping simplify the paperwork involved.

Financial advisors using Betterment Advisor Solutions can also manage the process on their clients’ behalf, with automated tools to track contributions against annual limits and reminders when after-tax balances are ready to convert. Contributions, conversions and 1099-R reporting are supported within the platform.

Betterment plans to introduce mega backdoor Roth capabilities for its employer-sponsored 401(k) plans in the coming months. Learn more about Betterment’s solo 401(k) for retail customers and financial advisors.

About Betterment
Betterment is a trusted wealth platform that provides modern, technology-driven solutions for investing, saving, and retirement. We empower customers to build wealth with confidence and ease via automated and self-directed investing, personalized financial advice, and high-yield cash management accounts. Betterment tailors its products and services to three distinct audiences, offering an award-winning web and mobile experience for retail investors, a 401(k) solution for small to mid-sized businesses through Betterment at Work, and an all-in-one custodial platform for independent RIAs through Betterment Advisor Solutions. Betterment helps more than 1 million customers manage over $70 billion in assets. Learn more at betterment.com.

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media@betterment.com

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SOURCE Betterment