9

Your total salary deferral cannot exceed $18K (as of 2016). You can split it between your different jobs as you want, to maximize the matching. You can contribute non-elective contribution on top of that, which means that your self-proprietorship will commit to paying you that portion regardless of your deferral. That would be on top of the $18K. You ...


8

If you have self-employment income you can open a Solo 401k. Your question is unclear as to what your employment status is. If you are self-employed as an independent contractor, you can open a Solo 401k. You can still do this even if you also earn non-self-employment income (i.e., you are an employee and receive a W-2). However, the limits for ...


7

Yes, you can be your own administrator for a Solo 401k. This is normally called a non-prototype/non-model/self-directed solo 401k plan. In a standard plan, you would just open up a an solo 401k account with one of the major providers like Fidelity, Schwab, ING, etc.. They would act as your administrator and broker. As an administrator they would handle tax ...


7

No. Not likely. You usually cannot transfer your 401(k) out of a company plan while you are still working there. Some companies do permit such transactions for those 55 and older, but only for your own deposits, not for the matching portion, if any. Either way, best to ask the admin for your company plan. If you were no longer with the company, you'd be ...


7

No. This account, along with IRAs, can only take 'deposits' in cash. They may accept transfers from similar tax status accounts "in kind", e.g. I can transfer assets from my pre-tax IRA to my Traditional Solo 401(k), or Roth IRA asset to a Roth Solo 401(k).


5

You setup a self-directed solo 401k by paying a one time fee for a company to setup a trust, name you the sole trustee, and file it with the IRS. None of these companies offer TPA because it opens them up to profit leaching liability. After you have your trust setup, you can open a brokerage account or several with any of the big names you want (Vanguard, ...


4

I would normally take a cautious, "it depends" approach to answering a question like this, but instead I'm going to give you a blunt opinionated answer based solely on what I would do: Sell Them All Even the crap. Get rid of them and get into the boring low fee mutual funds. I was in a similar situation a few years ago, almost. My retirement accounts ...


4

Can I still be considered Self-Employed? Sure. As long as you have income from that LLC that is, not by merely having it. I was going to take a loan from my LLC 401k. I would like to do more than a 5 yr loan (non mortgage) payback, is that possible? I asked that because everywhere I read it says "Generally, 401k loans are 5yrs". The IRS says that ...


4

Solo 401k is a simplified 401k plan for an employer who only employs himself (spouses allowed). As Dillip said, you have to have self-employed income.


4

Administrators have certain legal responsibilities and requirements. DOL lists some of them: Plan Administration Fees - The day-to-day operation of a 401(k) plan involves expenses for basic administrative services -- such as plan recordkeeping, accounting, legal and trustee services -- that are necessary for administering the plan as a whole. Today, ...


4

SEP is limited to 25% of the profits, so if the LLC's profit is 200k, the max you can put into retirement is 50K. The word "makes" in your question is ambiguous, but lets assume that you mean profit. The solo 401K the company match is limited to the same 25%. However, more can be contributed as the employee can contribute their salary, and then the ...


4

You qualify, and there don't need to be any additional costs. There are special rules for solo 401(k) plans that allow sole proprietors to use them without being employed or messing with payroll. In fact you are not an employee at all, part-time or otherwise, you are eligible as the sole proprietor. If you were an employee you couldn't use the solo 401(k),...


3

This seems to depend on what kind of corporation you have set up. If you're set up as a sole proprietor, then the Solo 401k contributions, whether employee or employer, will be deducted from your gross income. Thus they don't reduce it. If you're set up as an S-Corp, then the employer contributions, similar to large employer contributions, will be ...


3

Yes, they are deductible. The treatment is a little weird because of the self-employed nature. Profit Sharing contributions made to employees are deductible at the Employer level and are reported on line 19 of the Schedule C. However, contributions made by the employer on behalf of the self-employed individual are reported on the individual's 1040 (line 28)...


3

A Solo 401k plan requires self-employment income; you cannot put wages into it.


3

You can contribute to both plans. But note: "Generally, all elective deferrals that you make to all plans in which you participate must be considered to determine if the dollar limits are exceeded." The limit remains 16.5K whether you contribute to one, two, or more plans. http://www.irs.gov/retirement/participant/article/0,,id=151786,00.html


3

A couple rare items are taken pre-FICA, the Medical Flex Account, I believe is one of them. Then comes FICA/Medicare, and then the 401(k) withdrawal. So your math is correct. There might be other deductions that still get pulled out ahead of a ~93% retirement contribution. Union Dues are certainly coming out, as might the other payroll-enabled donations ...


3

IRA doesn't come instead of 401k, it comes in addition. That's the advantage - another $5500 tax deferred in addition to maxing out your 401k (if you're within income range of course).


3

You have a Solo 401(k). You can fund it with cash, or I believe, with shares of your own company. You can't pull in other assets such as the ISOs from another employer. I see why that's desirable, but it's not allowed. You wrote "this will mitigate all tax complications with employee stock options." But - you can't transfer the ISOs from your job into ...


2

Pros of Solo 401k: Higher contribution limits, you can contribute $17500 (this amount fluctuates every year, usually higher) and then can contribute 20% of your profits up to a total yearly contribution of $50,000 for a person filing as single. The other perks of 401k's come a long with that, such as being able to borrow against your 401k for 5 years. ...


2

You are in the perfect window for making an IRA contribution. The IRS allows you to make IRA contributions for last year until tax day. So you know that for 2014 you didn't have access to a 401K at work. You want to avoid making a deductible IRA contribution for this year (2015) until you are sure that you wont have a 401K at work this year. Take your time ...


2

This depends on a lot actually - with the overall being your goals and how much you like risk. Question: What are your fees/commissions for selling? $8.95/trade will wipe out some gains on those trades. (.69% if all are sold with $8.95 commission - not including the commission payed when purchased that should be factored into the cost basis) Also, I ...


2

Their paperwork should help you along. Schwab is the broker and custodian, you are the administrator. There's virtually no paperwork after the account is opened, until you hit $250K in value, and then there's one extra IRS form you need to fill out each year. See One-Participant 401(k) Plans for a good IRS description of form 5500. Disclosure - I use ...


2

From your question it seems like you own the business and you W-2 yourself. Therefore any pre-tax employee contributions you might have already made (ie. employee deferrals) have already been deducted from your W-2. In a simple W-2, Box 1 (Gross income, what you pay income tax on before any adjustments) will equal Box 5 minus 401k deferrals. Your options for ...


2

The interest rate is determined by your 401(k) provider and your plan document. Of course you may be able to influence this, depending on your relationship with the provider. I'm very certain that prime+1% is not the only rate that is possible. However, your provider is constrained by IRC 4975(d), which states that the loan must be made "at a reasonable ...


2

Limitations of money you earn only applies to contributions. Transfers, rollovers and conversions don't require income. Gap years are great times to do conversions etc. that may have tax consequences.


2

If it was me, I would work with the 401K provider and ask them if anything needs to be done formally. Also you can close the business. SBA link to closing a business. Once the business is closed the solo 401K does not exist, so you are not covered. If you had this organized as an S-Corp this becomes a lot easier. You can simply fire yourself, and then ...


1

Please note that if you are self employed, then the profit sharing limit for both the SEP and Solo 401(k) is 20% of compensation, not 25%. There is no need for a SEP-IRA in this case. In addition to the 401(k) at work, you have a solo-401(k) for your consulting business. You can contribute $18,000 on the employee side across the two 401(k) plans however ...


1

There are two types of 401(k) contributions: "elective contributions," which are the part put in by the employee and "nonelective contributions," which are the part put in by the company. Elective contributions are summed across all the plans she is contributing to. So she can contribute $18,000 minus whatever she put in her 403(b). Additionally she can ...


1

If you're simply trading with your own money and have not incorporated, then you are not eligible for a solo 401(k). Nerdwallet has an excellent Q&A on the topic here for example. Solo 401(k) is only allowed to be funded with earned income, and capital gains are not earned income. From the IRS page on One Participant 401(k) plans: Elective ...


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