taxisimpossible101ParticipantStatus: AttorneyPosts: 1Joined: 04/10/2019
First of all, thank you in advance for your help (it is quite gracious of you to offer it), and I apologize for my ignorance.
My wife has worked in a number of jobs this past year, and as a result hasn’t been able to open a 401k. However she worked for 6 weeks in a consulting capacity, for which she received a 1099-MISC. That “gig” has ended, and I’m not sure when/if she’d have another similar one. She has also received two other W-2’s this year for other jobs. We’re currently looking at about a $6k tax bill and were wondering if she could open up a solo 401k and contribute around 10k to that to lower our tax bill (and save for retirement).
For added context, I believe our tax bill is due to our AGI being relatively “high” despite the fact that I owe 200k+ in debt, live in NYC and basically realize none of our income after paying rent and monthly student loan checks.
Happy to answer any additional questions, and thank you all again- you’re quite generous to offer your wisdom, and I only hope I’m able to pay it forward similarly in the future.
Thanks!April 10, 2019 at 2:56 pm MST #205460jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 7161Joined: 01/09/2016
She can contribute to a solo-k only if she opened it before 12/31/18. Otherwise, she is limited to contributing 20% of her net profits to a SEP IRA, which she can then r/o to a solo-k. Unfortunately, she won’t be able to do the dollar-for-dollar matching of the 1st $19k afforded by a 401k.
Welcome to the forum!
Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
https://fox-cpas.com/for-doctors-only/April 10, 2019 at 3:04 pm MST #205554