On Mar 18, 4:55*pm, Rich Carreiro <rlc-n...[at]rlcarr.com> wrote:
- quote -

So I can't do both the SEP-IRA *AND* the "solo" 401K ?
So I just contribute the 18.5% (or whatever it is) of net 1099
income to the existing SEP-IRA, and be done with it ?

Thanks !

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JGE <jge[at]cs.unc.edu> writes:

- quote -

If you've maxed out your employee contribution at your
day job, then a solo 401(k) and a SEP-IRA are equal
in terms of the amount of SE income you can contribute
and shield from income tax. In other words, the max
allowed employER contribution to a solo 401(k) is the
same as the max contribution allowed to a SEP-IRA.

So for 2007, you may as well use the SEP-IRA.

--
Rich Carreiro rlc-news[at]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. > << ------------------------------------------------------- >

Thanks for all the discussion, but I'm starting to get confused.
Let me phrase my question in a completely different way ...

1. This year, I'll earn about $30K in a W-2 job.

2. I'll also earn about $15K in consulting (1099-MISC).

3. I've already max'ed out my 401K ($20,500) from the W-2 job.

4. I wish to tax defer as much income as possible.

How can I best accomplish #4 ?

Also, I've already made my max Roth IRA contribution, and I have
a pre-existing SEP-IRA, to which I've made no contribution as yet.

Thanks, John

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

<removeps-groups[at]yahoo.com> wrote:

- quote -

No. That limit is per plan, not per person. The $15,500 limit on salary
deferrals is per person.

--
Phil Marti
Clarksburg, MD

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

On Mar 17, 7:31 pm, Rich Carreiro <rlc-n...[at]rlcarr.com> wrote:

- quote -

Is it true that the net amoutn you can put into all your 401k and
SEP's, employee and employer portions, must be less than 45k (or
whatever the max limit for SEP IRA's is now)?

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

JGE <jge[at]cs.unc.edu> writes:

- quote -

Yes and no. The employEE salary deferral limit is the sum of those two.
But each employER matching plan stands alone.

- quote -

While you can't make any employEE contribution to your solo 401(k),
you can still make the 20% max employER profit-sharing contribution
to your solo 401(k).

--
Rich Carreiro rlc-news[at]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. > << ------------------------------------------------------- >

I have a W-2 job with a 401K funded by paycheck deductions. I also
have 1099
income from self-employment. Is it true that the annual 401K limit
applies
to the SUM of these two ? In other words, if I have max'ed out the
401K
off my W-2 job, then it's pointless to open an individual 401K ?
(Yes, I realize
I can still do a SEP-IRA from the 1099 income).

Thanks, John

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