Multiple 401k question breaking 54k limit - Partner in LLC with extra 1099

[rallycobra]

I'm an doc that is part of a 40+ member group organized as an LLC. I put 54k away in 401k/profit sharing with the group.

Assume that I make 10k on a 1099 as a speaker for a device company this year.

 

Can I open a solo 401k at Fidelity and fund it with the full 10k?

 

 

 

[DMFA]

If none of that $54k is "employee contributions" in the form of salary deferral, then you should still be able to fund up to $18k of employee contributions total across all 401(k)s.

Otherwise, you should still be able to add 20% of net profits (income - expenses - 1/2 SE tax) as a separate unrelated employer contribution, though I admit that I do not know whether your status as a partner in the business might prevent your self-employment from being considered an "unrelated employer."  I don't think it does, but that's something I would need to ask a professional about.  I know some people do it, but again I'm uncertain if it's truly kosher.

[jfoxcpacfp]

rallycobra wrote:

I’m an doc that is part of a 40+ member group organized as an LLC. I put 54k away in 401k/profit sharing with the group.

Assume that I make 10k on a 1099 as a speaker for a device company this year.

Can I open a solo 401k at Fidelity and fund it with the full 10k?

Click to expand...

You didn't say so, but I'm sure you are already contributing $18k as an employee in the main entity. With 40+ members, your second SE job does not constitute a member of a controlled group with the main entity. You can contribute 20% of the net profits from your separate speaking job. Note that "net profits" is not the $10k "gross receipts" but the taxable income after you deduct the expenses attributable to the income, per your schedule C.