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two 401k plans with fidelity?

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  • two 401k plans with fidelity?

    I am a EM guy that is paid on a 1099 at my main job where we have our group plan, but I also moonlight outside of my main job on a 1099. I was wanting to set up a additional 401k (solo). Would Fidelity allow me to have two 401ks there?

  • #2
    You mention "group plan" but that you are being paid via 1099. A group plan is for W2 employee pay, for a sole proprietor with additional employees, or for you as partner in a partnership (K1), so something doesn't add up. Could you please clarify?
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      When you are referring to a "group plan", are you referring to a qualified plan (401a, 401k or 403b)? ERISA prohibits independent contractors from participating in an employer's pension plan. Here is a quote from the DOL:

      "Independent contractors are not employees of the client company and thus are not eligible to receive tax-free benefits from the company. If the company chooses to include an independent contractor in its health insurance plan, the contractor must pay income taxes on the value of the benefit. If the company includes an independent contractor in its pension plan, it risks losing the tax exempt status of the plan."

      The only employer retirement plan I am aware of that can include independent contractors is a 457b plan specifically constituted for independent contractors separate from that of one for their employees. This is because a 457b is a non-qualified plan.

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