How To Set Up a Mega Backdoor Roth With Empower

Step 1: Confirm After-Tax & Rollover Support at Empower

Log into empowermyretirement.com (or browse our Employer 401(k) Benefits Directory) and check two rules inside My Account → Plan Details / Summary Plan Description:

1. After-Tax Source: Under Contribution Rate settings, verify there is a line specifically labeled After-Tax (separate from Pre-Tax and Roth 401(k)).
2. Conversion Permission: Confirm the plan permits either In-Plan Roth Conversions or In-Service Withdrawals of after-tax balances (note whether there is a per-year frequency limit like 2x or 4x/year vs. unlimited).

Step 2: Set Your After-Tax Payroll Percentage

Run your salary and employer match numbers in the Mega Backdoor Roth Calculator first so your regular deferrals plus after-tax deferrals leave room for every dollar of employer match beneath 2026's $71,000 combined limit.

Step 3: Enable Automated Sweeps or Call Empower (855-756-4738)

Empower plans vary widely depending on employer configuration:

• If Online Conversion Exists: Under Manage → In-Plan Roth Conversion / Rollovers, toggle on automatic future after-tax conversions (or submit online sweeps whenever deposits settle).
• If Phone Request Required: Call Empower Participant Services at 855-756-4738. Ask: "Does my plan support standing automated in-plan Roth conversions for future after-tax deposits? If not, I would like to convert 100% of my settled after-tax source to Roth now."

Step 4: Invest Converted Roth Funds & Verify Form 1099-R

Allocate your converted Roth balance into your lowest-fee institutional index funds inside the Empower menu. In January, look for Form 1099-R ? Form 1099-R IRS tax form issued by your 401(k) custodian reporting retirement conversions. Box 5 shows your non-taxable after-tax basis so you only pay tax on Box 2a gains. , confirming Box 5 accurately subtracts your already-taxed basis.