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Anyone know if:
1. An individual can administer his or her own solo 401k, and
2. Can retirement pay be used to fund?

USAA says they can set one up for me, but they don't administer it... I thought I could do that myself since I'll be the only employee...actually I just retired, and haven't decided if I want to work, but if I do, I'd like to shield the income from takes somewhat... Pretty sure I can't use my retirement check to fund and thst the IRS will need to see new income...sigh...

Comments and return fire welcome...

Chris
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1. An individual can administer his or her own solo 401k

Yes, it is possible to do so, if you have earned income from your own business. As the employee in 2015, you can defer up to $18k of your compensation. As the employer, your business can make a contribution of up to 25% of the profit. Combined, the total contribution is limited to $53k. Additionally, if you are 50 or older by the end of the year, you can make an additional catch-up contribution of $5k, which is not counted toward the $53k limit.

2. Can retirement pay be used to fund?

No. Only your compensation and the business profits can be used.

I'd like to shield the income from takes somewhat... Pretty sure I can't use my retirement check to fund and thst the IRS will need to see new income...sigh...

Yeah, only income that's reported can be used for contributions to a 401(k). <sarcasm>Given that it sounds like your career and your retirement both are funded from taxes, it seems to be a bit disingenuous to be asking about how to fund a 401(k) without declaring the income.</sarcasm>

AJ
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Appreciate the reply... Wish I could rec it more then once...
Of course my pension is taxable, so hadn't thought about is a cheating the system... Haha... Guess that's why the IRS wants to see new income.

Happy Thanksgiving All!

Chris
(Who thinks the tax system is whack and favors a flat tax)
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couple of quick points:

If your business is not incorporated, the percentage amount is reduced to approximately 20% on net self employment income,
25% is for W-2 or incorporated business income.
While you can administer your own Single K, once Plan assets reach $250k, you will need to file an IRS Form 5500EZ, or Form 5500SF.
You will also need a Plan document with a Trustee as all 401ks are held in a Trust. There are providers that do this for very little cost, but may have restrictions on the investments. If you don't want restrictions on what you can invest in, then you will need to have the document drafted and do the 5500 if applicable down the road.

Bill
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Thanks Bill... Looks like I'm gonna be reading some serious tax code... Appreciate the heads up.

Chris
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