kkannParticipantStatus: PhysicianPosts: 2Joined: 07/08/2019
Couldn’t find the answer to this question in the posts/forum, hopefully not a repeat:
Current job involves W2 income from medical director work AND 1099 income from shift work in the ER. Hospital offers a 401K with some matching. Currently have $19K employEE contribution from the W2 income and then 20% of net 1099 income going into a solo401K. My understanding is that each employER gets a separate $56K limit.
To conform: for the W2 my employER is the hospital, and for the 1099 my employER is me, so I can theoretically put $19K (W2) + $56K (1099) = $75K away per year in 401Ks, correct?
Thanks!July 8, 2019 at 10:59 am MST #228714jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 8362Joined: 01/09/2016To conform: for the W2 my employER is the hospital, and for the 1099 my employER is me, so I can theoretically put $19K (W2) + $56K (1099) = $75K away per year in 401Ks, correct?Click to expand…
Yes, plus whatever the hospital matches at your W2 job.July 8, 2019 at 11:00 am MST #228734jacoavluModeratorStatus: Physician, Small Business OwnerPosts: 2465Joined: 03/01/2018so I can theoretically put $19K (W2) + $56K (1099) = $75K away per year in 401Ks, correct?Click to expand…
yes with the caveat that the employer contribution to the solo k is limited to 20% of net self employment income which I’m sure you already know
assuming that you exceed the social security wage base in W2 employment you would need $283,800 1099 profit (after deductible business expenses) to fund $56,000 in employer contributions to the solo k.
and I admit that I don’t know if or how the QBI deduction plays into this.
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVAPedsModeratorStatus: PhysicianPosts: 4694Joined: 01/08/2016July 8, 2019 at 11:56 am MST #228755spiritriderParticipantStatus: Small Business OwnerPosts: 1973Joined: 02/01/2016
It is not likely. However, if you have ANY ownership interest in the hospital you would likely be part of an affiliated service group and unable to adopt a one-participant 401k.July 8, 2019 at 2:30 pm MST #228786