Author Topic: solo 401(k) with Vanguard after I meet my employer match? (I'm SE and Employed)  (Read 1757 times)

seathink

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I looked at irs.gov for info on a solo 401(k), and it makes sense. My only question, can I max out the "employee" portion at $17,500 even though my SE income is only a few hundred dollars?

I'd much rather have Vanguard than Fidelity for my max. I just don't know if I can, especially as the contributions would set me back as a loss... Oh, maybe I just answered my own question.

Next question, does anyone have a solo 401(k)? What's that like.

terran

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No you can't. You can only contribute up to 100% of your schedule C profit less 1/2 of your self employment taxes. You might find http://www.irs.gov/Retirement-Plans/Self-Employed-Individuals-Calculating-Your-Own-Retirement-Plan-Contribution-and-Deduction helpful.

protostache

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I looked at irs.gov for info on a solo 401(k), and it makes sense. My only question, can I max out the "employee" portion at $17,500 even though my SE income is only a few hundred dollars?

I'd much rather have Vanguard than Fidelity for my max. I just don't know if I can, especially as the contributions would set me back as a loss... Oh, maybe I just answered my own question.

Next question, does anyone have a solo 401(k)? What's that like.

I have a solo 401(k), although my SE profit is quite a bit more than a few hundred dollars. I like it, but I'm paying for a totally flexible, non-prototype plan where I can put money into almost anything because I'm the trustee. I'll break even vs just opening a Vanguard solo 401(k) after 7 years, due to the fact that Vanguard restricts you to their Investor class, whereas I'm able to invest in anything, including Fidelity's Spartan Advantage class.

seathink

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Perfect, that calculation page is exactly what I was looking for! Thanks, protostache,, to for the report.

Roboturner

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Also I think the limits were increased to 18k rather than 17.5k, someone tell me Im right?

seathink

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Yes! Been reading old posts from earlier years and got stuck on the 2014 rate.