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Author: PosFCF Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76406  
Subject: Re: Individual 401k Date: 7/11/2004 1:53 AM
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lmpage00

If anyone has any input to this important investment opportunity I would welcome their feedback.

Under an individual 401K I believe one can, as the employer, set aside up 25% of the income as part of profit sharing. As an individual, one can contribute up to $13,000. If one is also over 50, they can also add a "catch up" amount of up to $3,000.

Therefore a person who is self-employed and over 50 years old and is making $100,000 this year can put aside $25,000 + $13,000 + $3,000 = $41,000 (the max allowed).

At least, this is my understanding of how it works.

Of course, the definitive source for correct information is a tax professional or the IRS itself.

PosFCF
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