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Medicolegal consulting

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  • Medicolegal consulting

    I'm going to engage in a little small time medicolegal consulting and would like to route the money into a 401k as a sole proprietorship. I only expect to make a couple grand or so annually, so not even sure if this is something that would qualify for such a thing or be worth it if I have to pay significantly up front to start this new "business". Has anyone ever done this and if so do you have any helpful advice? Thanks.

  • #2


    • #3
      Thanks for the link, but i'm not questioning the pros and cons of doing it. I already have a small opportunity that i'm taking. My question is whether or not I might be able to route the $ into a 401k.


      • #4
        yes, but my understanding is only 20% of profit. So not sure if it's worth it or not


        • #5
          Yes, you can do it. If you are already maxing out your $19,500 deferral at your day job, then you can contribute only 20% of (net profits - 1/2 related FICA tax). Basically a DIY job (@spiritrider might disagree) but still prob not worth doing so unless you want to use it as a tool for future orphan retirement plan r/o’s.

          IF you are not maxing out your $19,500 deferral, you can contribute dollar for dollar of above formula up to the $19,500, then the 20% kicks in. Posting this for other readers, since prob irrelevant to you
          Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087