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Financial Planning / Tax Strategies


Subject:  Re: Solo 401K / Tax Question Date:  12/27/2004  8:41 PM
Author:  ptheland Number:  74975 of 127513

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.

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