Ron Sheldon <RSheldon[at]erols.com> writes:

- quote -

The annual *salary deferral* contributions are integrated.
So he can only make a total of $15,500 (or $20K+ if he's
eligible for "make-up" contributions) between the plans.
So if he maxed out his TSP contrib, he can't make any
deferral contribution to his solo 401(k).

However, he can still make the full profit-sharing contribution
(max of 20% of net self-employed earnings) to his solo 401(k)
and can do so even though he received employer contribs
from the Federales.

--
Rich Carreiro rlc-news[at]rlcarr.com

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Ron Sheldon wrote:
- quote -

are limited to $15,500 (w/o catchup). Any amount your friend
contributes to the TSP reduces the amount he can contribute to
his solo 401K. That does not stop one from making an employer
contribution to the solo 401K. The employer contribution is
limited to 20% of the business income (which is business income
minus half of the self-employment tax), up to a maximum of
$45,000 or the business income whichever is less.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

I have a friend [cc'd to this] who asked me a tax related question.
He makes the maximum annual contributions [$20K+] to the Federal
Goverment TSP retirement savings programs, which is similar to
employer 401k plans. He also has self-employment income and an
individual 401k plan.

Are annual combined contributions to the Fed. TSP program and
individual 401k plans limited to the $20K+ annual limit as if both
were employer 401k plans, or do annual contribution limits apply to
each separately?

Thanks in advance,

Ron Sheldon

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >