Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.