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In 2020, I have worked as both a sole proprietor / individual contractor with no employees and as a W2 part-time employee. I am 41 yrs old (under 50) and will have multiple streams of income in 2020:

  • $100K from 1099 contract work as a sole proprietor / individual contractor (from Jan 1-Apr 31)
  • $60K from a W2 as a part-time employee (projected through the entire year from Jan 1-Dec 31)
  • $85K in taxable short-term gains from stocks, dividends, and other investment income (projected through the entire year from Jan 1-Dec 31)

Projected Total Income for 2020: $245K from all income streams

I currently have 4 retirement accounts open:

  • a Solo (Individual) 401K (new account, balance: $0)
  • a Solo (Individual)  Roth 401K  (new account, balance: $0)
  • a Traditional IRA (existing account, balance: $280,000 of which $40,000 is in gains in 2020)
  • a Roth IRA (existing account, balance: $118,000 of which $18,000 is in gains in 2020)

I would like to maximize my tax deductions this year and move as much money as possible into both after-tax and tax-deferred accounts.

My question includes:

  1. Can I contribute up to a max of $57K (employee + employer portion) to my Solo (Individual) 401K AND a separate amount to my Solo (Individual) Roth 401K ? Is the max contribution limit of $57k total across BOTH the solo 401K and solo Roth 401K? Otherwise, what is the contribution limit on the Roth 401K?
  2. Can I either:
  • (Ideally) Contribute up to a max of $57K (employee + employer portion) to my Solo (Individual) 401K AND an additional $37,500 to a Mega Backdoor Roth? Or...
  • Contribute up to a max of $57K (employee + employer portion) to my Solo (Individual) 401K AND an additional $6,000 to a "regular" Roth? Or...
  • Contribute up to a max of $57K (employee + employer portion) to my Solo (Individual) 401K AND an additional $6,000 to a Traditional IRA?

What can and can't i do? My goal is to deduct / defer the maximum amount possible.

Note: I tried to do my research before asking this question. Here are some of the links I read:

Thanks for any help with this.

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