3

I was self employed during the first quarter of 2011, then switched to full time employment.

I have a solo 401k that I haven't contributed to in tax year 2011.

I have been contributing to my employer's 401k (to capture the match).

Can I still make a contribution to my solo 401k, or is it disallowed because I participate in another plan?

If it is allowed, what limits are in effect for the combined contributions (solo + regular)?

3

You can contribute to both plans.

But note:

"Generally, all elective deferrals that you make to all plans in which you participate must be considered to determine if the dollar limits are exceeded."

The limit remains 16.5K whether you contribute to one, two, or more plans.

http://www.irs.gov/retirement/participant/article/0,,id=151786,00.html

  • What about the profit sharing contribution on the solo 401k? Is that unaffected by the contributions to my employer plan? – bstpierre Nov 3 '11 at 13:27
  • As profit-sharing is an "employer contribution" and not an "employee contribution", it should not affect the amount you as employee pay into your 401K(s). Regardless, I strongly recommend a check with your plan administrator to confirm/refute. – gef05 Nov 3 '11 at 13:42

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.