QUESTION: We are trying to find a way to get my wife's old 403b plan
from a previous employer, and her existing standard IRA into a solo 401k,
like the one you set up for me. If we set up a side business for her (she is an
Rn who is making annual 403B contributions of $ 22,500 through her hospital
employer that shows 5-10K on income, can she still do the another 22.500, or is
the contribution amount even in the employee type 1 contribution limited to the
net income. .Is it also affected by her ongoing 403b contribution.
Do you have any other possibilities?
Tim in Minnesota
ANSWER: Assuming your wife can setup a side
business for self-employment purposes, she may open a solo 401k. However, her
type 1 contribution cannot exceed $22,500 (this is the 2014 salary deferral contribution
limit including the catchup) for both plans combined (her 403b and her solo
401k). We can discuss further over the phone when you are ready.
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