No. of Recommendations: 0

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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.