mid-year switch 401k to ?

[grateful]

when i retire at mid-year 2007 i will have funded my employer sponsored 401k to the max. if i then do consulting for the rest of the year can i also contribute to some kind of deductable self-employed retirement plan? if i can, how much, and is there a limit to the total contributions i can make to both plans?
grateful

 

[Martha]

when i retire at mid-year 2007 i will have funded my employer sponsored 401k to the max. if i then do consulting for the rest of the year can i also contribute to some kind of deductable self-employed retirement plan? if i can, how much, and is there a limit to the total contributions i can make to both plans?
grateful

Yes, you can set up another retirement plan such as a SEP IRA or Solo 401k. However, there are a number of rules on how to figure out how much you can contribute. A good article that outlines the rules is here: http://www.investopedia.com/articles/retirement/05/commonquestions.asp. Also look at IRS publication 560: http://www.irs.gov/publications/p560/index.html

The article is much easier reading the the pub.


edited to fix the link

 

[scrinch]

...add an .asp to the end of the first link in Martha's post above...