Monday, June 2, 2014

contribute to 403b and 401k plan





http://www.mysolo401k.blogspot.com/2012/05/what-is-solo-401k-commonly-called.html

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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