Maximum Retirement Contributions

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Subject Author Date Maximum Retirement Contributions Gary 05-18-2009  Re: Maximum Retirement Contributions Rich Carreiro 05-18-2009  Re: Maximum Retirement Contributions Gary 05-19-2009   Re: Maximum Retirement Contributions Steve Pope 05-19-2009  Re: Maximum Retirement Contributions Rich Carreiro 05-19-2009   Re: Maximum Retirement Contributions Steve Pope 05-19-2009  Re: Maximum Retirement Contributions rick++ 05-20-2009
Posted by Gary on May 18, 2009, 2:42 pm Please log in for more thread options I have a full time job that I contribute my 401K max contribution of $15,500 k per year + I max out a Roth IRA. I am also a consultant, is it possible to contribute to a retirement account for my consulting gig as well ? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Rich Carreiro on May 18, 2009, 4:25 pm Please log in for more thread options > I have a full time job that I contribute my 401K max contribution of > $15,500 k per year + I max out a Roth IRA. I am also a consultant, is > it possible to contribute to a retirement account for my consulting > gig as well ? Yes, it is. Possibilities are (for starters) SEP-IRA, Keogh, and solo-401k (while you can't do salary deferrals since you maxed out on your day job, you can still make the profit-sharing contributions). Given the simplified rules around the solo-401k, I'd start by investigating that. -- Rich Carreiro rlc-news@rlcarr.com -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Gary on May 19, 2009, 9:33 am Please log in for more thread options wrote: > >> I have a full time job that I contribute my 401K max contribution of >> $15,500 k per year + I max out a Roth IRA. I am also a consultant, is >> it possible to contribute to a retirement account for my consulting >> gig as well ? > >Yes, it is. Possibilities are (for starters) SEP-IRA, Keogh, >and solo-401k (while you can't do salary deferrals since you maxed >out on your day job, you can still make the profit-sharing contributions). > >Given the simplified rules around the solo-401k, I'd start by >investigating that. > >-- >Rich Carreiro rlc-news@rlcarr.com Even if I get a 1099 for my consulting gig, I can still create a Solo 401K ? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Steve Pope on May 19, 2009, 1:10 pm Please log in for more thread options >>Yes, it is. Possibilities are (for starters) SEP-IRA, Keogh, >>and solo-401k (while you can't do salary deferrals since you maxed >>out on your day job, you can still make the profit-sharing contributions). >>Given the simplified rules around the solo-401k, I'd start by >>investigating that. >Even if I get a 1099 for my consulting gig, I can still create a Solo >401K ? Yes, so long as you file a Schedule C for your self-employement income (or have certain other types of income) you can create a solo 401(k). One gotcha is if your business ever has employees, then you cannot use the solo 401(k) and would have to convert it into a different type plan, which is slightly messy. Another gotcha is there is a filing requirement, which will eventually kick in, and after 2009 requires specialized software. Steve -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Rich Carreiro on May 19, 2009, 1:29 pm Please log in for more thread options >>Given the simplified rules around the solo-401k, I'd start by >>investigating that. > > Even if I get a 1099 for my consulting gig, I can still create a Solo > 401K ? Yes. The solo-401k is designed for sole proprietors and 1-man LLCs/S-corps/etc. As a sole proprietor you can make a profit sharing contribution[*] of up to 20% of (profit - 1/2 SE tax) even if you maxed out at your day job and even if you get a match at your day job. [*] the profit-sharing contribution can't be more than $46,000 (or perhaps $47,000 -- that limit changes each year and I can't remember the 2009 number). With a solo-401k for a sole prop., you have until the original due date of your personal return to make the contributions. However, the plan has to initially be set up by the end of the calendar year. I'm familiar with Fidelity's plan. It is free (other than commissions and the like) and you have a totally self-directed brokerage account. And until total plan assets hit $250,000 there aren't even any forms to file with the IRS (aside from the initial SS-4 to get an EIN to open the plan under -- you can't open it under your SSN. If you already have an EIN for your sole prop, you can use that one.) -- Rich Carreiro rlc-news@rlcarr.com -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Maximum Retirement Contributions - SIMPLE and SEP July 7, 2008, 7:00 pm Change in Maximum Age to Begin Required Minimum Distribution from Retirement Accounts October 4, 2008, 3:55 pm Re: Retirement Contributions April 12, 2006, 11:28 pm maximum IRA + 403b contribution August 7, 2008, 12:38 pm Maximum Interest Allowed on a Business Loan October 17, 2008, 1:04 pm Re: 401K vs IRA maximum annual contribution limit difference April 11, 2006, 3:31 am Re: 401K vs IRA maximum annual contribution limit difference April 14, 2006, 4:04 am Retirement vehicles other than IRA, 401(k) June 5, 2007, 3:20 pm Railroad Retirement December 27, 2007, 9:29 pm Deductions after retirement April 15, 2006, 2:47 am