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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: VladTheImpaler on January 03, 2019, 02:39:27 PM

Title: Solo 401(k) questions
Post by: VladTheImpaler on January 03, 2019, 02:39:27 PM

Hey fellow MMM's

I have a technical question in regards to retirement accounts:

If a person has a full-time job (w-2), but their employer does not offer a 401(k),
can they open a Roth solo 401(k) and make after-tax contributions?

Title: Re: Solo 401(k) questions
Post by: bacchi on January 03, 2019, 03:34:57 PM

Only if that person has earned income from their own business.

tl;dr: No.

Title: Re: Solo 401(k) questions
Post by: VladTheImpaler on January 04, 2019, 02:49:27 PM

Ok thanks. :)

Title: Re: Solo 401(k) questions
Post by: walkwalkwalk on January 04, 2019, 03:02:15 PM

You could ask to be a 1099 contractor. But highly unlikely that you would be paid more, and you'd probably be misclassified if you are now a W-2 employee.

Title: Re: Solo 401(k) questions
Post by: BicycleB on January 04, 2019, 05:29:14 PM

Agreeing with all posts to date.

Note that you can invest your earnings up to $6,000 into an IRA ($7000 if over 50, I think). If your health insurance has an HSA option, usually that offers up to $3,000 opportunity to invest with tax advantages, I think.

Also note if you have a side business, and your W-2 job doesn't have an IRA, you can have a solo 401k for income earned in the side business (I think that's what bacci meant).