Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Stupid question of the day - Simple (k) rollover?
Old 07-24-2007, 10:02 PM   #1
Full time employment: Posting here.
Join Date: Jun 2007
Posts: 567
Stupid question of the day - Simple (k) rollover?

So, I did some work in the past as a sole proprietor. I set up a simple k at AIM. I want to roll that to my Vanguard IRA. Do I need to go about firing myself or quitting from myself to let me roll my assets over?

Bonus second question. (I'm stupid, but I make up for it by reading slow) I am probably going to be able to hit a self-employment contribution this year as well (I'm an LLC now but it's about the same). If I'm both employed by the man and self-employed, am I allowed to contribute to a SEP IRA or does my salary from 'da man' count against all IRA contribution limits? (I ask because it looks like Vanguard has a SEP IRA but not a SEP 401(k)).

Bonus third question (delivering more per post). Assuming I can't do a SEP IRA, where do you guys like for holding your self-employment 401(k)'s?

Thanks in advance

Webzter is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-25-2007, 09:08 AM   #2
Moderator Emeritus
Martha's Avatar
Join Date: Feb 2004
Location: minnesota
Posts: 13,211
Publication 560 (2006), Retirement Plans for Small Business is the IRS publication for small businesses such as yourself and retirement plans.

You can have a SEP IRA or a solo 401k and also have a 401k or other defined contribution retirement plan through work but there will be limits on what you can contribute. From the above pub 560: If you contribute to a defined contribution plan (defined in chapter 4), annual additions to an account are limited to the lesser of $44,000 or 100% of the participant's compensation. When you figure this limit, you must add your contributions to all defined contribution plans. Because a SEP is considered a defined contribution plan for this limit, your contributions to a SEP must be added to your contributions to other defined contribution plans.

For a nice plain language description of contribution limits when you have multiple plans, I suggest reading this article: Common Questions About Retirement Plans

I tend to favor solo 401ks rather than SEP IRAs for small businesses that don't earn a whole lot of money because you may be able to sock away more money in the solo 401k.

I wonder, but I haven't looked at the issue, if you could roll over your simple 401k into a new solo 401k which you establish for your LLC.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 07-25-2007, 11:36 AM   #3
Full time employment: Posting here.
Join Date: Jun 2007
Posts: 567
Martha, thanks! That investopedia article helped immensely. And, I just re-checked, my AIM account was set up as a Solo 401(k). So, for this year, I'm limited to contributing the difference between $15,500 and my actual contributions on the employee side and 20% of net profits on the employer side. I understand that I could contribute a lot more on the non-qualified side, but I guess I don't see the point of that at this time.

Thanks again!
Webzter is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
S&P 500 drops below 200 day MA cute fuzzy bunny FIRE and Money 21 04-25-2005 10:39 AM
Re: A Bad ER Day? BUM Life after FIRE 22 04-13-2005 06:43 AM
This company pays 1% per day 365 days a year! powercash FIRE and Money 3 02-28-2005 03:33 PM
Your day to do it dex Other topics 7 08-25-2004 11:19 PM
What do you do all day? arrete Life after FIRE 51 05-02-2004 11:49 AM


All times are GMT -6. The time now is 03:41 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.