is there a way to contribute to 401K or IRA without a W2 ?

[targatom2019]

I will be off company payroll after July 4th but and wondering if there is a way to contribute to Roth or 401K if I will not have a W-2. I have income from building rentals and maybe do some consultant work as needed for the company so I will also get a 1099.


Thanks

Tom

 

[Big_Hitter]

hopefully you maxed out your 401k deferrals, including catchup for 2019

 

[targatom2019]

I wish but FIRED at 50 yo.

 

[BeachOrCity]

You cannot do it with your rentals but you can contribute you 1099 income which goes on schedule c to an IRA or 401k. Fidelity does an easy solo 401k for this. Make sure your totals don’t exceed annual limits for self and employer

 

[bada bing]

You cannot do it with your rentals but you can contribute you 1099 income which goes on schedule c to an IRA or 401k. Fidelity does an easy solo 401k for this. Make sure your totals don’t exceed annual limits for self and employer

+1

If you pay self employment tax (schedule C income), you are eligible to open a
solo 401K based on only that income. Opening a solo 401K is more involved than
an IRA and there are differences between the account templates offered at different
brokerages. When I researched and opened a solo 401K I found that Schwab was
the best major brokerage for it. Their plan details have a few more features and their
retirement plan customer service team seemed more on the ball.

 

[rothlev]

if your rentals are reported as a business ( schedule C rather than schedule E ) then the income is self employment and you can contribute . It depends on the nature of the business. A flipper for example would report the income on schedule c and pay self employment tax. someone who owns one property and provides no services would report rental income on schedule E.

 

[Spock]

Too late for you now, but for the last several years of employment I front loaded the entire years 401k contribution into the first few months of the year. The employer plan allowed up to 80% of pay contributions, so I set January's contribution to as close to 80% as possible and still have $ in the paycheck to cover the health insurance, etc deductions.
That way if I got laid off mid-year (as eventually happened) I would still have the full years contribution and a lot lower taxable income for that year.

The year I did get laid off (may 31), I flexed the start of taxable unemployment compensation to start in December so that the bulk of it (capped by state law at a whopping $240/week) showed up on the following years much lower tax rate.

 

[targatom2019]

I already maxed out my Roth and 401k for 2019 year and will have a W-2 for the first 7 months of this year. It’s ok to max out Roth IRA around January 2020 since I will not have a W-2 for 2020 tax year.