For an individual who was self-employed part of this year and contributed to an Solo 401(k). Now the individual is employed and covered under a standard 401(k).
Does the solo 401(k) contribution lower the 18K contribution limit to the 401(k)?
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Sign up to join this communityFor an individual who was self-employed part of this year and contributed to an Solo 401(k). Now the individual is employed and covered under a standard 401(k).
Does the solo 401(k) contribution lower the 18K contribution limit to the 401(k)?
You can have multiple 401(k) plans, however the total annual contribution limit is still a total of $18k (in 2015).
As you anticipated in your question, if you defer 10K in one plan, for example, you may only contribute up to $8k in the second plan in order to stay under the $18k 2015 deferral limits.