I was wondering if anyone could tell me if I qualify to set up a personal 401-k Plan? I am currently employed and make a full salary. I have maxed out my individual contribution in my personal IRA account at $5500 this year.
I also receive income as an independent contractor both from my current employer with a 1099-Misc for work that I do above and beyond my regular employment contract and also as compensation for new clients that I bring into the firm. I also get paid directly from some clients. I have my own private business account and personal EIN number for the contractor work.
My employer doesn't offer any 401-K or pension plan and I feel I'm behind in the retirement game. I would really like to start using some of the money I'm earning as an independent contractor (no employees) to save in a personal 401-K. Am I eligible? I can't get a straight answer from anyone on this. I believe that I am.
Thank you in advance.