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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1304
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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If I have a day job and I am also self employed. If I max

Customer Question

If I have a day job and I am also self employed. If I max out my 401k at my day job can I contribute to some sort of retirement plan with my sole proprietorship?
Submitted: 1 year ago.
Category: Tax
Expert:  Mark D replied 1 year ago.

Hello, when you say you maxed out, and to referring to the $18K deferral? Does your employer match?

Customer: replied 1 year ago.
I make 18K in contributions from my own pay. My employer matches 3% (50% of the first 6%) and they also put in 5% of my base salary via a profit sharing plan (not sure if this counts as a match or not)
Expert:  Mark D replied 1 year ago.

Thanks, $53K is the max you can do, including your $18K and the match plus profit sharing. You may also be klimited based on your SE income. Example:

$18K deferral

4K match

5K profits sharing

$27K total

That would leave a max of $16K you could do in another 401K or SEP, none of which could be considered an employee deferral on the 401K part

Expert:  Mark D replied 1 year ago.

Hello, did that answer your question? Please rate if so. That is how I am paid.