Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Individual 401k question Date: 10/27/2012 2:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
I'm would like to max out and am wondering how much I can contribute to the individual 401k. I realize the annual limit of $50k (I'm 47), $17k on on the employee side and 20% on the profit sharing side (single memeber LLC). However, I'm wondering if there is any way the two plans (previous employer vs. my own consulting business) would be considered two different plans subject to seperate limits.

In other words say I contributed $5k under the previous employer. Can I contribute $17k under the consultancy plus a match of up to 20% of profits? Or can I only contribute $12k plus the match?


The salary deferral limit is per individual, so your limit there is $12,000. Other limits are by plan, so you get the full boat there.

Also any suggestions on how I figure out how much I already contributed through the previous employer?

Quickest source is the YTD figure on your last paystub. Maybe you could extrapolate from your last statement from the old plan? Remember that if you overcontribute you have a limited time in the new calendar year to retrieve the excess without tax consequence, so if you go over it's fixable.

Phil
Rule Your Retirement Home Fool
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
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.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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