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1099-C and solo 401K contributions

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  • 1099-C and solo 401K contributions

    I am getting a 1099-c this year (at least that is my understanding) for a stipend I received from a hospital during residency, student loan repayment, and bonus money. Can that money be counted as earned income so that I can make a contribution to my solo 401k which was started with a separate moonlighting income?

  • #2
    A stipend is not self-employment income. Depending on what the stipend is for, it may or may not be taxable.

    This is true regardless of the way it is reported. It is commonly mis-reported on a 1099-MISC box 7. It is still not self-employment income available for employer retirement plan contributions.

    You usually have to jump through hoops to get tax software to file this correctly. The software companies have a manual exception process to handle this.


    • #3
      this came up with me when i had to take a distribution from my prior job 457b. it was reported on a 1099 form but i really don't think 1099 = solo 401k eligible. but i could be wrong.