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401 k question?

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  • 401 k question?

    So I’m paid on 1099 at a couple different EM jobs. I know I can have multiple 401ks, but is my limit for each 401k 54k or is 54k my limit for all of those combined?

  • #2
    Combined you can only have 54k total 401k contributions each year no matter how many accounts you have.


    • #3
      Not necessarily true.

      There is only one employee deferral limit per individual (2017 = $18K, 2018 = $18.5K), but there is a separate annual addition limit (2017 = $54K, 2018 = $55K) per unrelated employer.

      However, in the OP's case the OP is one employer with multiple clients, thus one annual addition limit.

      On the other hand, if the op had a W-2 employer and multiple 1099 clients. While there would be only one employee deferral limit. The OP could have a separate annual addition limit for the W-2 employer and one for a one-participant 401k.

      I would add, if this is what hightower meant. Even if you were to treat the income from each 1099 client as a separate business with a separate employer retirement plan, there would still only be one annual addition limit.