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Author: storygirl Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Solo 401K / Tax Question Date: 12/27/2004 8:24 PM
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Yes, I have left it until the last minute, but I really didn't know that self-employed 401Ks existed until a couple of days ago. Here's my very basic question:

I'm self-employed and my income goes up substantially this year because I took the cash value of a employee stock plan I inherited but could not rollover into an IRA. It's around $60,000 (and 10% tax was deducted before sending me proceeds) which brings my income up to the highest tax rate. 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? I suspect I have to pay those taxes no matter what, but wonder if you guys know otherwise. I'd have to open up a solo 401K before the end of the year, so that clock is ticking.

Thanks very much for any advice you can offer.
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