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No one can contribute to a 401(k) that was established by a previous employer-- not you and not one of your clients. (Well, depending on how you might define "contribute", if you have a rare 401(k) that lets you take out a loan and pay it back after separation, I suppose you might argue that the interest you're paying counts..) As a sole proprietor, your ...


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Or, alternatively, do I need to take the client fee as income and then deduct it somehow? Yes, but note that you can't contribute to a 401(k) after you are no longer employed by the company - you will need to roll that money into an IRA. After that, then you would count the income as income, then deduct the IRA contributions (subject to annual ...


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No, your clients cannot contribute directly to your retirement accounts. The taxes are figured out every year when you file your income tax return. There's no advantage to having a client pay into a retirement account, even if it were possible. So, yes, you take the client fees as income, then contribute to your retirement accounts as you see fit and as ...


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