Self employed...employee contribution

Arif · 12-25-2005, 01:12 PM

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.

Tomcat98 · 12-26-2005, 06:32 PM

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

JDW

**Martha** · 12-26-2005, 06:48 PM

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.

Arif · 12-26-2005, 07:32 PM

Thanks for the links.

thefed · 12-26-2005, 10:04 PM

42 k/yr is sweet! cant beat that

Arif · 12-27-2005, 08:43 AM

Quote:

42 k/yr is sweet! cant beat that

And that is not including the employer match either!

**Martha** · 12-27-2005, 09:07 AM

The 42,000 is maximum for everything--employee and employer contributions.

Arif · 12-27-2005, 12:49 PM

Quote:

The 42,000 is maximum for everything--employee and employer contributions.

Ahh man

12-25-2005, 01:12 PM	#1
Arif Full time employment: Posting here. Join Date: Jun 2005 Posts: 661	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. __________________ You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.

12-26-2005, 06:32 PM	#2
Tomcat98 Recycles dryer sheets Join Date: Sep 2002 Posts: 201	Re: Self employed...employee contribution You can check out www.401khelpcenter.com. They have a section on it. JDW

12-26-2005, 06:48 PM	#3
Martha Moderator Join Date: Feb 2004 Location: minnesota Posts: 8,816	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. __________________ . Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.

12-26-2005, 07:32 PM	#4
Arif Full time employment: Posting here. Join Date: Jun 2005 Posts: 661	Re: Self employed...employee contribution Thanks for the links. __________________ You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.

12-26-2005, 10:04 PM	#5
thefed Thinks s/he gets paid by the post Join Date: Oct 2005 Posts: 1,275	Re: Self employed...employee contribution 42 k/yr is sweet! cant beat that

12-27-2005, 09:07 AM	#7
Martha Moderator Join Date: Feb 2004 Location: minnesota Posts: 8,816	Re: Self employed...employee contribution The 42,000 is maximum for everything--employee and employer contributions. __________________ . Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.

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