Comments on: Solo 401k For Part-Time Self-Employment http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html like a friend telling you about money ... Tue, 22 May 2012 19:53:21 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: KS http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8648 KS Mon, 21 May 2012 19:35:23 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8648 thanks tfb, the fidelity rep was less than confident about his answer, but it makes sense. And thanks for the tip about renaming the account, I didn't realize I could do that, but then again, have never had a reason to. :) thanks tfb, the fidelity rep was less than confident about his answer, but it makes sense. And thanks for the tip about renaming the account, I didn’t realize I could do that, but then again, have never had a reason to. :)

]]> By: TFB http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8647 TFB Mon, 21 May 2012 17:36:05 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8647 KS - Don't worry; that's the one. Keogh is a name for any plan for the self-employed. Your 401k plan is a profit sharing plan with a salary deferral (401k) feature. So "Profit Sharing Keogh" is actually an accurate description. You can rename the account to anything you want. Go to the account history page, then click on the "Name This Account" link. KS – Don’t worry; that’s the one. Keogh is a name for any plan for the self-employed. Your 401k plan is a profit sharing plan with a salary deferral (401k) feature. So “Profit Sharing Keogh” is actually an accurate description. You can rename the account to anything you want. Go to the account history page, then click on the “Name This Account” link.

]]> By: KS http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8646 KS Mon, 21 May 2012 17:17:22 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8646 I submitted the paperwork to open an solo 401k with fidelity, and today I see online a new account called "profit sharing keogh". The representative said this was their solo 401k, but he was reading from a script, and he was clearly very new. I didn't have time yet to call again, but I will send them an email. tfb, did you have the same experience with fidelity? I was able to find one other person on the web who had the same "keogh" experience and was concerned they were different than a solo401k, , but it did not mention the outcome/resolution. KS I submitted the paperwork to open an solo 401k with fidelity, and today I see online a new account called “profit sharing keogh”. The representative said this was their solo 401k, but he was reading from a script, and he was clearly very new. I didn’t have time yet to call again, but I will send them an email.

tfb, did you have the same experience with fidelity? I was able to find one other person on the web who had the same “keogh” experience and was concerned they were different than a solo401k, , but it did not mention the outcome/resolution.

KS

]]> By: TFB http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8609 TFB Wed, 09 May 2012 17:57:39 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8609 KS - If you are under 50, set line 17 to 0. If you are not maxing out your day job 401k, the spreadsheet first allocates the allowable contributions as employee contribution to the solo 401k. It's possible to prioritize employer contribution over employee contribution but when you are both the employer and the employee, whether it's employee contribution or employer contribution doesn't really matter much. KS – If you are under 50, set line 17 to 0. If you are not maxing out your day job 401k, the spreadsheet first allocates the allowable contributions as employee contribution to the solo 401k. It’s possible to prioritize employer contribution over employee contribution but when you are both the employer and the employee, whether it’s employee contribution or employer contribution doesn’t really matter much.

]]> By: KS http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8608 KS Wed, 09 May 2012 16:34:12 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8608 I'm having trouble with the spreadsheet, getting a $0 amount for profit sharing, if I put any number less than $22,000 in line 20. Is this because if I contribute less than allowed to my day job 401k I SHOULD not do any profit sharing contribution, or is it because I CAN NOT do profit sharing. I plan to open a solo 401k this year based on a small sole proprietorship income. But I also max out my employer's 401k, and my income is above the SS wage base. I was under the impression that I could still make a profit sharing contribution to myself as long as I had net profit. I’m having trouble with the spreadsheet, getting a $0 amount for profit sharing, if I put any number less than $22,000 in line 20.

Is this because if I contribute less than allowed to my day job 401k I SHOULD not do any profit sharing contribution, or is it because I CAN NOT do profit sharing.

I plan to open a solo 401k this year based on a small sole proprietorship income. But I also max out my employer’s 401k, and my income is above the SS wage base.

I was under the impression that I could still make a profit sharing contribution to myself as long as I had net profit.

]]> By: TFB http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8446 TFB Mon, 09 Apr 2012 16:45:10 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8446 Will - The maximum is just that, the maximum allowed by law. You can contribute less than the maximum if you'd like. Will – The maximum is just that, the maximum allowed by law. You can contribute less than the maximum if you’d like.

]]> By: Will http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8444 Will Mon, 09 Apr 2012 12:32:37 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8444 TFB - Shouldn't the max profit sharing on line 31 be adjustable too? Or is that not self-determined? I thought you could contribute up to 25%. How is line 31 calculated? TFB – Shouldn’t the max profit sharing on line 31 be adjustable too? Or is that not self-determined? I thought you could contribute up to 25%. How is line 31 calculated?

]]> By: TFB http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8432 TFB Sat, 07 Apr 2012 15:55:03 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8432 SS - I fixed it. SS – I fixed it.

]]> By: SS http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8429 SS Sat, 07 Apr 2012 05:13:30 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8429 TFB, Hate to dig up this old thread, but I think this spreadsheet might no longer be accurate for 2011 (and possibly 2010). The reason is that the employer portion of the SE tax is 7.65 while the employee portion is 5.65, because of the reduction in SS tax. So, wouldn't the half of SE tax need to be recalculated? Or am I off base here. I can't believe this is this hard to figure out! TFB, Hate to dig up this old thread, but I think this spreadsheet might no longer be accurate for 2011 (and possibly 2010). The reason is that the employer portion of the SE tax is 7.65 while the employee portion is 5.65, because of the reduction in SS tax. So, wouldn’t the half of SE tax need to be recalculated? Or am I off base here. I can’t believe this is this hard to figure out!

]]> By: Will http://thefinancebuff.com/solo-401k-for-part-time-self-employment.html#comment-8263 Will Mon, 19 Mar 2012 00:05:30 +0000 http://thefinancebuff.com/2008/10/solo-401k-for-part-time-self-employment.html#comment-8263 TFB - thanks for the info! I guess I'll have to deal with an inadvertent over-contribution now. Ooops. TFB – thanks for the info! I guess I’ll have to deal with an inadvertent over-contribution now. Ooops.

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