summer2007
Recycles dryer sheets
- Joined
- Jul 14, 2007
- Messages
- 346
I just found out about the solo 401k and there is something I don't understand.
If you are self employed but you have many sources of income what are your contribution limits for your solo 401k?
Here is what I mean. Lets say your main business makes 20k a year and you make 5k a year in interest and 10k a year trading stocks and another 5k a year doing odd jobs for people giving you 40k a year total income.
Can you only contribute to your 401k from just your business that makes 20k a year or can you include your other income sources as well and count it as 40k?
The business that makes 20k a year is really your only real business the rest of your income is still self employed income but it isn't an actual business.
I haven't been able to find the answer to this anywhere but I figured it would be just your business amount of 20k that would count. If so is there another way that you could set up a roth retirement account that you could use your full 40k income with?
I probably made a mess out of explaining this!
Thanks
Jim
If you are self employed but you have many sources of income what are your contribution limits for your solo 401k?
Here is what I mean. Lets say your main business makes 20k a year and you make 5k a year in interest and 10k a year trading stocks and another 5k a year doing odd jobs for people giving you 40k a year total income.
Can you only contribute to your 401k from just your business that makes 20k a year or can you include your other income sources as well and count it as 40k?
The business that makes 20k a year is really your only real business the rest of your income is still self employed income but it isn't an actual business.
I haven't been able to find the answer to this anywhere but I figured it would be just your business amount of 20k that would count. If so is there another way that you could set up a roth retirement account that you could use your full 40k income with?
I probably made a mess out of explaining this!
Thanks
Jim