QUESTION: I have a small part time business and am a full time employee of an unrelated business which I do not own. Am I eligible for a solo 401(k)?
ANSWER: While the 401k rules permit contributions to both a full-time employer 401k plan and a solo 40k, the key is not to exceed the annual contribution limits between both plans. Click here to learn more about contributing to multiple 401k plans. Lastly, to set-up a solo 40k, you must be self-employed at least on a part-time basis and have no full-time employees. Please click on pub. 560 to learn more about the solo 401k set-up requirements.
Thanks John in Missouri
ANSWER: While the 401k rules permit contributions to both a full-time employer 401k plan and a solo 40k, the key is not to exceed the annual contribution limits between both plans. Click here to learn more about contributing to multiple 401k plans. Lastly, to set-up a solo 40k, you must be self-employed at least on a part-time basis and have no full-time employees. Please click on pub. 560 to learn more about the solo 401k set-up requirements.
Thanks John in Missouri
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