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Self employed...employee contribution
Old 12-25-2005, 02:12 PM   #1
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Self employed...employee contribution

For 2006 my income will come soley from self employment. I've been reading about the new Roth 401 and somewhere it mentioned that the employer contribution would be put in a regular 401k. Does anyone know if there is a % or $ limit on the amount the employer is allowed to contribute to an employees 401k which in my case would both be me.
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Re: Self employed...employee contribution
Old 12-26-2005, 07:32 PM   #2
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Re: Self employed...employee contribution

You can check out www.401khelpcenter.com. They have a section on it.

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Re: Self employed...employee contribution
Old 12-26-2005, 07:48 PM   #3
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Re: Self employed...employee contribution

You can set up a solo 401(k) if you are self employed. For 2005, if you are under 50, the maximum contribution is $42,000, or your total income, whichever is less. You can design a plan that allows all or part of the contributions you make be ROTH contributions, if you want.

The IRS publication for setting up retirement plans for small businesses is at http://www.irs.gov/publications/p560/index.html

I like the web site JDW posted for 401(k) information. It also provides links to possible providers.
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Re: Self employed...employee contribution
Old 12-26-2005, 08:32 PM   #4
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Re: Self employed...employee contribution

Thanks for the links.
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Re: Self employed...employee contribution
Old 12-26-2005, 11:04 PM   #5
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Re: Self employed...employee contribution

42 k/yr is sweet! cant beat that
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Re: Self employed...employee contribution
Old 12-27-2005, 09:43 AM   #6
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Re: Self employed...employee contribution

Quote:
42 k/yr is sweet! cant beat that
And that is not including the employer match either!

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Re: Self employed...employee contribution
Old 12-27-2005, 10:07 AM   #7
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Re: Self employed...employee contribution

The 42,000 is maximum for everything--employee and employer contributions.
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Re: Self employed...employee contribution
Old 12-27-2005, 01:49 PM   #8
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Re: Self employed...employee contribution

Quote:
The 42,000 is maximum for everything--employee and employer contributions.
Ahh man
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