The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/but-if-i-open-a-self-employed-401k-and-put-a-21815015.aspx

Subject:  Re: Solo 401K / Tax Question Date:  12/27/2004  8:41 PM
Author:  ptheland Number:  74975 of 121061

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.

--Peter
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us