Changing jobs. Additional pre-tax contributions?

[scurry]

Hello Everyone,

In my current practice, I am set up as an S-corp. Because of this, I was able to set up a solo 401k and have already contributed the max 53k for 2016. In July, I will be changing jobs and in my new position, I will be paid a W2 and will no longer be set up as an S-corp.

For my new job, am I eligible to make additional pre-tax contributions to a new account, such as a new IRA with a contribution of 18k? Or are my pre-tax contributions already maxed, despite now changing and becoming a W2 employee?

Thanks for your help.

 

[Zaphod]

scurry wrote:

Hello Everyone,

In my current practice, I am set up as an S-corp. Because of this, I was able to set up a solo 401k and have already contributed the max 53k for 2016. In July, I will be changing jobs and in my new position, I will be paid a W2 and will no longer be set up as an S-corp.

For my new job, am I eligible to make additional pre-tax contributions to a new account, such as a new IRA with a contribution of 18k? Or are my pre-tax contributions already maxed, despite now changing and becoming a W2 employee?

Thanks for your help.

 

Click to expand...

You definitely should be able to contribute again, however, how much depends on your set up and how you characterized the first 53k. If you put 18k as employee contribution your SOL for that part and have to try and get your employer to make up the difference somehow.