"Rich Carreiro" <rlcarr[at]animato.arlington.ma.us> wrote:

- quote -

He could do a SEP or a profit sharing only 401(k). Can't do
a simple for the same reason he cannot contribute to another
401(k). Could also do a DB plan but with the income you're
looking at, it's not worth the effort.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Given:
* A friend has written a book (published late last year)
that will probably net him $10K-$20K a year this year
and the next couple of years.
* He and his spouse both work regular, full-time jobs, and
don't "need" the book money to cover any expenses.
* He already makes a full IRA contribution and maxes
out his day-job 401(k).

What, if anything, can he do to put as much as possible of
the book profit (even all of it, if that can be done) into a
qualified retirement plan? Will a Keogh do the trick? (Do
Keoghs still exist?) Can he do something with a solo 401(k)
(or is that out because of maxing out the 401(k) at his day
job)? SEP? SIMPLE-IRA?

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >