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Posted by John Bliss on January 10, 2008, 3:55 pm
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I work as a 1099 contractor part time, and as a W2 employee full time
(40 hrs a week). My W2 employer offers a 401k plan, which I do not
participate in yet, in 2008. I also have a solo 401k set up from last
year. I expect my 1099 income to be about the same as my W2 income
this year.
I would like to defer the maximum amount possible.
My question is, will it be advantageous for me to not participate in
my employer's 401k and instead only defer my 1099 income into my solo
401k because I could theoretically defer upto $43000 whereas I can
only defer $15500 max if I participate in the employer's 401k (the
employer does not match any contribution at all).
I have heard that because I am eligible to participate in my
employer's 401k plan, I may not even be eligible to contribute to my
solo 401k. Is this true?
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