Author Topic: solo 401k?  (Read 1416 times)

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
solo 401k?
« on: October 17, 2018, 08:55:56 PM »
Hi everyone. So from my employer, I contribute to a 457 and 403B (max of $37,000 allowed), IRA of $5,500. I think by the end of the year, I'll have contributed $14,000 to the 403b and $1,000 in the 457. I just signed up for the 457 so that's why it's so little. For self-employment, I'll do a few dog walks, etc. Do I qualify to open a Solo 401K? If I do, am I only allowed to put 20% from self-employment income?

For next year, I'll max all my retirement out.

bacchi

  • Walrus Stache
  • *******
  • Posts: 6429
Re: solo 401k?
« Reply #1 on: October 17, 2018, 09:10:32 PM »
Yes. You can split up to $18,500 combined between the 403b and 401k. If you max out your 403b contribution, you're limited to making employER contributions to your solo 401k -- the 20% you stated is (more-or-less) correct.

https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
Re: solo 401k?
« Reply #2 on: October 17, 2018, 09:14:22 PM »
Yes. You can split up to $18,500 combined between the 403b and 401k. If you max out your 403b contribution, you're limited to making employER contributions to your solo 401k -- the 20% you stated is (more-or-less) correct.

https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan

Thanks! So this does not have anything to do with my 457 right? Since I'll have deducted $14,000 in my 403b by the end of the year, that means I can put all my self-employment income (the remaining $4,500) in the solo 401k?

Also, would bank account bonuses count as self-employment income?

bacchi

  • Walrus Stache
  • *******
  • Posts: 6429
Re: solo 401k?
« Reply #3 on: October 17, 2018, 09:32:14 PM »
Thanks! So this does not have anything to do with my 457 right?

Right, the 457 is another $18,500 bucket.

Quote
Since I'll have deducted $14,000 in my 403b by the end of the year, that means I can put all my self-employment income (the remaining $4,500) in the solo 401k?

You can put in all the self-employment income minus the SE tax. There are a number of solo 401k calculators out there to nail down the exact amount.

Quote
Also, would bank account bonuses count as self-employment income?

No. It's not "earned" income and the bank will send a 1099-INT, which is considered INTerest income.

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
Re: solo 401k?
« Reply #4 on: October 18, 2018, 06:01:21 AM »
Thanks! So this does not have anything to do with my 457 right?

Right, the 457 is another $18,500 bucket.

Quote
Since I'll have deducted $14,000 in my 403b by the end of the year, that means I can put all my self-employment income (the remaining $4,500) in the solo 401k?

You can put in all the self-employment income minus the SE tax. There are a number of solo 401k calculators out there to nail down the exact amount.

Quote
Also, would bank account bonuses count as self-employment income?

No. It's not "earned" income and the bank will send a 1099-INT, which is considered INTerest income.

Got it. Thanks for your help.

 

Wow, a phone plan for fifteen bucks!