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W2 401k and 1099 (low earnings, multipe side gigs) individual 401(k) questions.

Home Retirement Accounts W2 401k and 1099 (low earnings, multipe side gigs) individual 401(k) questions.

  •  tintin 
    Participant
    Status: Spouse
    Posts: 20
    Joined: 01/07/2019

    @jfoxcpacfp, the worksheet provided by Fidelity at https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/sep-cntrb-wksht.pdf lists employer contribution limit to be 25% but you have mentioned 20% of net earnings. Can you clarify please?

    #180545 Reply
     jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1676
    Joined: 03/01/2018

    25% of compensation is the same as 20% of net self employment earnings, that’s just the way the math works so both figures are correct

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #180550 Reply
     stellardoc1 
    Participant
    Status: Physician
    Posts: 40
    Joined: 07/21/2016

    Another novice question to PB on this, If I have a passive real estate income (let’s say 20K) along with side gig (consulting) income (20K), do I get to put 20% of 40K?

     

    #180553 Reply
     jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1676
    Joined: 03/01/2018

    Another novice question to PB on this, If I have a passive real estate income (let’s say 20K) along with side gig (consulting) income (20K), do I get to put 20% of 40K?

     

    Click to expand…

    no passive income doesn’t count

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #180555 Reply

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