Questions tagged [solo-401k]
The solo-401k tag has no usage guidance.
63
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Contribution deadlines for Solo 401k as Single-Member LLC
I am trying to understand Solo 401k contribution deadlines for Single-Member LLC:
Pre-tax contributions to traditional solo 401k. This includes both employer and employee contributions.
After-tax ...
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90
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Consolidating Multiple Solo 401k Plans into One
My spouse and I have separate solo 401k plans (let’s call them Plan A and Plan B), which we opened a few years ago when we undertook self-employed activities. This year, we opened an LLC as QJV and ...
- 161
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What business tax forms are impacted by adding an employer non-elective 401(k) contribution?
Bob is the owner and only employee of an S-corporation. For tax year 2023, he pays himself a salary of $150,000 and elects to defer $22,500 to a one-participant 401(k) plan. Bob also wants to add ...
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Applying 1099 Income to Solo401k Contributions
I have been doing contract work and receiving checks made out to me personally, which will be reported on a 1099.
I also just formed an S Corp for future employment to get some of the benefits there.
...
- 153
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Solo 401k establishments costs - is it employer or employee?
I am on owner/employee for S-Corp. Took help from an administrator in establishing Solo 401k and paid some fees.
Can we write this fee as "business expense" (or) "is it EMPLOYEE expense&...
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How to rollover Solo Roth 401k to Roth IRA
I have a Solo 401k at TD Ameritrade for retirement investing of side-hustle income. This plan comprises two accounts: a traditional (pre-tax) Solo 401k and a Roth Solo 401k. TD recently announced it ...
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187
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Do you get any social security credits if you put 100% of your income in a 401(k)?
Scenario:
Your spouse is the primary earner
You had a 1099 side-job earning $15k
You put all $15k in a solo-401(k) plan
Would you earn any social security credits in this situation?
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Self-Employed near retirement needing to start a retirement account
My father is 58, with no retirement accounts. He's run a sole-proprietorship for most of his life with 0-1 employees and doesn't have too much in savings. We're exploring the options of a ...
- 313
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What are the rules regarding early withdrawal of contributions from a Roth IRA after a rollover from a solo Roth 401(k)?
Plan
Open a solo Roth 401(k) (I'm self-employed) and contribute roughly $50,000 during the first year
Wait some amount of time, if necessary?
Rollover the Roth 401(k) into my existing Roth IRA
...
- 11
3
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1
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84
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How do I manage 401K Contribution limits across multiple sources of income?
I have an employer sponsored 401K plan where my employer matches up to a certain limit. I max out at 19.5K and my employer pays about 7.5K which works out to be 27K total.
Now I also perform ...
- 132
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Correcting excess 401k contribution to solo 401k -- Do I have to file a 1099 R before I can file my 2020 taxes?
In 2020 I left a corporate job and started my own business. I established a solo-401k and accidentally made an excess contribution to the solo 401k due to a previous contribution in my last job's 401k....
- 21
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185
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Shutdown my Solo 401(K) plan and form 5310
I recently shutdown my Solo 401(K) plan at E*Trade. I plan to file form 5500EZ. I have distributed the money to a traditional IRA and a Roth IRA. None of the money went into another 401(K) plan.
Do I ...
- 1,540
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Do I have to invest my Solo 401k contributions to take advantage of tax deferral
Is simply contributing to my solo 401k account and keeping it in cash balance enough to take advantage of tax deferral, or do the funds need to be invested?
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Do I need to report contributions to a Solo Roth 401(K) plan every year?
I am self employed. I recently shutdown my individual 401(K) plan at E*Trade. There was also a Roth 401(K) plan also. I am not sure if it is one plan or two.
I have been told by somebody at E*Trade ...
- 1,540
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153
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What are the penalties for mistakes in form 5500EZ
I recently shutdown my solo 401K Plan and solo Roth 401K plan. I have filled out form 5500ez but have not yet sent it in to the IRS. I understand there are very serious penalties for filing late. What ...
- 1,540
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Filing Form 5500EZ and Plan Characteristics Codes for Line 8
I recently shutdown my individual 401(K) plan at E*Trade. There was also a Roth 401(K) plan also. I plan to file form 5500EZ twice, once for each plan. On line 8, I need to put in one or more ...
- 1,540
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Solo 401K with a Solo Roth 401K and MEGA Backdoor Roth
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:
...
- 111
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1
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257
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EIN Needed When Filing Form 5500-EZ For Solo 401K
I am a sole proprietor and opened a solo 401k with TD Ameritrade at end of 2018 and then funded it before the tax filing deadline in 2019.
I understand that Form 5500 (5500-EZ) needs to be filed ...
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169
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Reclassifying income from passive to active for actively managed rentals
I own multiple rental properties and a property management LLC.
I would like to start paying a 10% management fee (industry standard rate) on all my rentals to my property management LLC.
My ...
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138
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maximum solo 401K contribution
My net profit from a freelancer job is $2656. The IRS "self-employment estimated worksheet" calculated that my SE tax is $375.27, and "Deduction worksheet" calculated that after SE tax deduction, my ...
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Tax consequence of 100% profit deferral to solo 401k contribution
My yearly maximum contribution to solo 401k is $6000 after $13000 contribution to Simple IRA on W2 position. This year I expect to earn less than $6000 from the side job. Can I contribute all profits ...
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96
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From which bank account should I make employee contributions to my Self-Employed (Solo) 401k?
I have both business and personal checking accounts.
For employee contributions to my self-employed 401k, does it matter for legal or tax purposes which account I draw a contribution from?
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Is it possible to deposit stock into a Solo 401k?
Towards the Solo 401k limit, is it possible to deposit stock held in an investment account, and have that count towards the limit?
For example, if my 401k contribution limit is $20,000 annually, can ...
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Can I roll over 401k without leaving job, into personal IRA [duplicate]
I am younger than 40. Can I move my current employer-sponsored 401k funds to a personal IRA, without penality, and without leaving the company?
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149
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Solo 401k eligibility
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 ...
- 195
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107
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Paying my wife's LLC from my LLC and solo 401k contributions
My wife works as a consultant to a business I operate (a single-member LLC). Can I pay her business (also a single-member LLC) as a vendor? I would treat her payment as a contractor expense, and she ...
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2
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143
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Am I still covered by my self-employed 401(k)?
A couple years ago I setup a self-employed 401(k) plan (solo 401(k)) to handle retirement contributions made from a side hustle that my spouse and I both participated in as a qualified joint venture. ...
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Avoiding self-employment tax and maximizing retirement contributions
This is a follow-up to the answer to this question.
Suppose you have a single-member LLC that makes $200k and that you would like to contribute the annual maximum of $54k to a SEP IRA.
Is it ...
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123
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Can a person running two (non-incorporated, sole-proprietor) businesses write off expenses from one and contribute to a solo 401k for the other?
I think this will be the last year I can get away with not using a tax professional, but I'd love to go one more year before I have to. My wife (filing jointly) is currently freelance consulting. Let'...
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159
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20% pass through deduction + ~20% solo 401k deduction?
From what I hear none of the 401k stuff has been modified in the new tax bill
This means SOLO 401ks would still have like 20+% profit contribution maxes, up to the $53k or so upper limit from entity ...
- 20.2k
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60
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Can I rollover a traditional IRA into a self-employed 401k if the self-employed business had no income this year?
I have a self-employed 401k, and I want to rollover a traditional IRA into it. My self-employed business has no income this year, and I'm wondering if the rollover is allowed without tax penalties.
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194
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2 401k's and a SEP-IRA
I have been a contractor for 9 months of this year where I earned 1099 income. I am an employee with a company that has a 401k. I am over 50 so I can contribute $24,000 to the company 401k, and the ...
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What dictates 401K loan interest rates?
I have seen it commonly mentioned that 401K loans are offered commonly at Prime + 1% rates? But is that required by law? What section of the tax code addresses the upper and lowerbounds on interest ...
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132
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How to calculate the maximum contribution to a Solo 401(k) for a small side business?
My wife has been hired as an independent contractor to give language lessons. She has other teaching jobs where she receives W-2s. She contributes to a 403(b) through those jobs, but is below the $...
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Circumstances where pre-tax trading profits can go into a Solo 401k
Can trading profits (capital gains) be contributed to a solo 401k under the employer profit contribution provisions, where up to 25% of business profits can be contributed. (some sources say 20%)
...
- 20.2k
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106
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Solo 401k and 25% profit contributions: Is this also a deduction against income?
Are the 25% profit contributions also a deduction against income? Assume the income source is a pass-through entity such as a single member LLC, so all income comes straight to the individual's taxes. ...
- 20.2k
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2
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Can you really contribute over the 401k limit if you have a traditional 401k and a side-hustle?
I just had a possibly-brilliant idea, but I am completely not an expert in retirement/tax laws, so I'm wondering if there's anything I'm missing here:
I have a regular job I plan on keeping long-...
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129
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Can I use my Solo 401(k) to deduct my taxes from my W-2 earned income?
I used to be a contractor (1099) in 2014, but have been a W-2 employee all of 2015 and 2016, I work for a startup that I am not the owner of, they pay me as a w2 employee.
In 2015, I maxed out my ...
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169
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Do I need to start a new 401k?
I have a solo 401k for over 10 years. I had to stop working in the line of business I was doing and start in a different business. My question is do I need to start a new 401k and roll the old one ...
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Can I contribute to a SEP-IRA and a Solo 401(k) for the same business?
This money.SE question and this BogleHeads forum thread both seem to ask about whether or not you can contribute to both a SEP-IRA and a Solo 401(k) at the same time for the same business. I'm not ...
- 922
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142
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How can I calculate an employer 25% contribution for a solo 401k in advance?
My situation: I am the sole employee of an S-Corp. In 2016, based on a reliable contract, I can expect a gross of $80K. Typically, I have $2-3K in expenses. I'm under 50. Because of our overall ...
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356
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As a Sole Proprietor, will "employer" Solo 401k contributions count towards gross income?
With a Solo 401k, I can contribute up to 25% of my income as "employer contributions." Do these contributions count toward my adjusted gross income?
Example
I make $100,000 in 2015. I am 55 years ...
- 289
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98
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Individual 401(k) and Contribution Limits [duplicate]
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 ...
- 6,588
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498
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Should I sell my individual stocks and buy a mutual fund
In early 2008, I rolled over a small 401K from a previous employer into a private account and bought a bunch of individual stocks. (Stop laughing)
For a while, it was so bad, the transaction fees to ...
- 2,602
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329
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Administrator vs Broker vs Custodian for a Solo 401(k)?
I'm planning to open a Solo 401(k) with Schwab. There are some provisions that are decided by the Plan Administrator, which I assumed would be me (my business, technically). However, doing research, I'...
user12337
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Can I open a Solo 401(k) if I am an independent contractor but also work part-time as an employee?
I am contributing to the 401(k) at my part time job, but want to know if I can also open a Solo 401(k) to delay taxes on income from my work as an independent contractor.
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Can a Solo 401k be used to reduce your taxes by selling taxable investments and contributing the proceeds?
I have been reading up on Solo 401k plans, thinking I might start one for myself. From what I see, there is a quasi-loophole that could be useful for tax planning. If I understand how Solo 401ks ...
- 24k
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209
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Should I open an IRA, or will it be redundant once I get a 401k?
I'm 28 years old and currently a 1099 self-employed contractor at my job, and have been for 2+ years now. I make about $70k a year before taxes. I'm hoping to eventually get hired on full-time and ...
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Solo-401k interaction with employer sponsored 401k. Limits of contribution from Schedule C income
I'm quitting a job at the end of this year. I want to start a solo-401k for all my schedule C income and I have a couple of concerns:
If my employer were to, for some reason, pay me in 2015 some ...
- 215
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176
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Do I qualify for a personal 401-K Plan?
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 ...
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