The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Solo 401K / Tax Question||Date: 12/27/2004 8:41 PM|
|Author: ptheland||Number: 74975 of 119695|
But, if I open a self-employed 401K and put a chunk of inherited money in there, will that keep me from being taxed this year on that very same money?
Technically, no. Any contribution to a solo 401k plan would be based only on your self-employment earnings. So when talking to administrators and other service providers, you are simply setting up a new plan.
However, perhaps you can afford a larger contribution than you otherwise might be able to make because you have received some other money during the year.
You have a reasonable plan, just make sure you are referring to what you want to do in the technically correct way.
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|