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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: Re: Solo 401K / Tax Question Date: 12/27/2004 8:41 PM
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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
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