Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19218  
Subject: Re: 401k/1099 and direct contributions Date: 4/26/2000 4:51 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Marlenus, and welcome. You wrote:

<<I have a 401K from my previous employer that will allow me to keep my money there as well as continue to make contributions (or so I believe).

My new job pays via 1099, thus no taxes taken out. If I contribute some of that money, come tax time, is there anything special that I need to do when reporting gross income?>>


Sorry, but you will not be able to contribute to your old 401k plan. While your money may stay there, you no longer work for that employer, and the plan is for the benefit of that employer's workforce. That workforce does not include former employees for the purposes of contributions.

You say you are now a 1099 employee, or self-employed. That makes you eligible for a SEP, SIMPLE or Keogh plan based on your net self-employed income. For a brief description of those plans, see my Foolish Retirement Plan Primer at http://www.fool.com/Retirement/Retirement.htm. You should also read IRS Publication 560 (Retirement Plans for Small Business) available at http://www.irs.ustreas.gov/prod/forms_pubs/index.html.

If the self-employed plans don't appeal to you, then you may always use a deductible traditional IRA and regular taxable accounts for your savings.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement