Hello WCI!
This is my very first post, so please forgive me for my limited financial knowledge! I can promise that I’ve tried my best to sift through previous blog posts for the answer to my questions.
I have some questions regarding setting up a solo 401k.
Just a little background - I’m an emergency medicine physician with both 1099 and W2 income. I’ve already maxed out my contributions to a 403b account ($18K) with the hospital that provides my W2 income.
I would like to take advantage of maxing out my retirement to the $54K limit if possible through a solo 401K. Through my 1099 income, I will make a total of approximately $147K by the end of the year with a net profit of approximately $135K on a 1099 as an independent contractor. This net profit is simply a total income minus business expenses and does not take into account any taxes.
Here are my questions:
1) Given these numbers, can I only contribute $135K * 25% = $33750 into my solo 401K? Or can I put in $36K ($147K * 25% = $36750)?
2) I’m planning on opening a solo 401K with TD Ameritrade because all of my other accounts are with them (roth IRA, traditional IRA, individual brokerage account), and they DO allow me to use my SSN to open up the account. Is there any benefit to me obtaining an EIN and opening up the account with an EIN instead? Is the only benefit of using an EIN is protecting the theft of my SSN on forms?
3) I have received all of my 1099 income through my social security number and it is deposited straight into my personal bank account. Can I still obtain a new EIN number today and max out the solo 401K even though I obtained all the income through my SSN?
Thanks in advance for all of your help.
This is my very first post, so please forgive me for my limited financial knowledge! I can promise that I’ve tried my best to sift through previous blog posts for the answer to my questions.
I have some questions regarding setting up a solo 401k.
Just a little background - I’m an emergency medicine physician with both 1099 and W2 income. I’ve already maxed out my contributions to a 403b account ($18K) with the hospital that provides my W2 income.
I would like to take advantage of maxing out my retirement to the $54K limit if possible through a solo 401K. Through my 1099 income, I will make a total of approximately $147K by the end of the year with a net profit of approximately $135K on a 1099 as an independent contractor. This net profit is simply a total income minus business expenses and does not take into account any taxes.
Here are my questions:
1) Given these numbers, can I only contribute $135K * 25% = $33750 into my solo 401K? Or can I put in $36K ($147K * 25% = $36750)?
2) I’m planning on opening a solo 401K with TD Ameritrade because all of my other accounts are with them (roth IRA, traditional IRA, individual brokerage account), and they DO allow me to use my SSN to open up the account. Is there any benefit to me obtaining an EIN and opening up the account with an EIN instead? Is the only benefit of using an EIN is protecting the theft of my SSN on forms?
3) I have received all of my 1099 income through my social security number and it is deposited straight into my personal bank account. Can I still obtain a new EIN number today and max out the solo 401K even though I obtained all the income through my SSN?
Thanks in advance for all of your help.
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