Announcement

Collapse
No announcement yet.

Company 401k for only half the year - am I eligible for individual 401k?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Company 401k for only half the year - am I eligible for individual 401k?

    A question came up from one of my senior co-residents who is entertaining job offers. He is currently a resident and our hospital offers a regular 401k as a W2 employee. He will graduate in June and take a position as an attending, but in the contract he mentioned that he won't have access to the 401k until he has been with the new practice at least 6 months (which will be 2018 then). We were discussing how much he is able to contribute and what the best strategy is?

    -Can he max out his 18k portion for the first six months while still a resident (if he has the money to do so) and then setup a solo 401k for the rest of 2017 and contribute to that while an attending? Or does the fact that he did have some access to a regular 401k during the 2017 calendar year make him ineligible for a solo 401k?

  • #2


    -Can he max out his 18k portion for the first six months while still a resident (if he has the money to do so) and then setup a solo 401k for the rest of 2017 and contribute to that while an attending? Or does the fact that he did have some access to a regular 401k during the 2017 calendar year make him ineligible for a solo 401k?
    Click to expand...



    1. Yes, he can max out $18k in the 1st job.

    2. Yes, he can also set up and contribute to a SOLO-k in 2017, but only if he has some IC income. Will he be moonlighting along with his W2 attending job?

    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3
      No moonlighting. Just working at his regular attending job upon graduation.

      1c income?

      Comment


      • #4
        IC = Independent Contractor

        Comment


        • #5
          In case the OP is not aware of it. There is only one employee elective deferral limit (2017 = $18K) between all qualified plans of all employers. If the full $18K is deferred at the first employer, there is no deferral available at subsequent employer.

          As already stated, it is only possible to open and contribute to a solo 401k if there is self-employment or S-Corp 2% shareholder-employee compensation. If the circumstances of the first paragraph exist, only employer contributions would be possible. If self-employment, you can only contribute a maximum of 20% of net self-employment income. If shareholder-employee (W-2), you can only contribute a maximum of 25% of W-2 compensation.

          Comment

          Working...
          X