Friday, March 1, 2013

Gift Contributions to Solo 401k | Gift Distributions from Solo 401k




QUESTION: Is there any other way to contribute more toward solo 401k other than employee and employer contribution like gift to trust etc? Just thinking if I could be innovative within the boundary of guidelines.
Thanks,

Dr. P. in AR

ANSWER: While all 401k plans fall under the trust umbrella [501(c)], the solo 401k rules do not allow for gift contributions or gift distributions. The only types of contributions that may be made to a solo 401k are rollover/transfers from other retirement plans and annual contributions from self-employment income (employee and employer).

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