I would like to know if I am eligible to open a Solo 401k, and if so, what is the max amount I can contribute.
I think I meet the requirements listed on various sites:
- I have started working on a 20 h/week 1099 contract which I believe makes me a Sole Proprietor
- I have no full-time employees
- I am turning a profit (by virtue of being paid for my work)
Things become confusing where same sites say that the business can have part-time employees, but they are generally excluded from coverage if they work less than 1000 hours annually.
It is not clear if this exclusion is mandatory or optional: does the the owner of the business have the option to not cover the part-time employee, or is in fact not allowed to cover the part-time employee under the Solo 401k plan?
My contract is part time (20 h/week) - am I considered a part-time employee of my own business? If so, if I end up working less than 1000 hours in 2019, am I not allowed to contribute to the Solo 401k as an employee?
At the same time I am also the employer, so am I allowed to make the so called Profit Sharing Contribution in that capacity, even if it turns out I am not eligible to contribute as a part-time employee?
Thank you.