Search found 484 matches

by johnanglemen
Sat Apr 14, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Interest and penalties accrue from original or extended tax filing deadline?
Replies: 3
Views: 283

Re: Interest and penalties accrue from original or extended tax filing deadline?

The due date, April 15. Gill Is it fair to say then that this is one downside of filing an extension? I've seen others on this forum say that you might as well file an extension to give yourself more time (while of course paying what you think you owe by the original due date). But it seems that th...
by johnanglemen
Sat Apr 14, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Interest and penalties accrue from original or extended tax filing deadline?
Replies: 3
Views: 283

Interest and penalties accrue from original or extended tax filing deadline?

Say I pay what I believe to be owed on April 15th and file the good-faith (extension) return showing this amount on April 30th. The IRS later determines that there's a small underpayment. Is the interest and penalties on this underpayment calculated from April 15th or April 30th? I assume the former.
by johnanglemen
Mon Apr 09, 2018 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: TurboTax bug: Q4 2017 estimated tax deadline
Replies: 2
Views: 240

Re: TurboTax bug: Q4 2017 estimated tax deadline

Interesting, so it looks like a bug in the IRS worksheet itself then, not a TurboTax problem. Weird.

TurboTax calculates the days from 1/15.
by johnanglemen
Mon Apr 09, 2018 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: TurboTax bug: Q4 2017 estimated tax deadline
Replies: 2
Views: 240

TurboTax bug: Q4 2017 estimated tax deadline

The 2210 Penalty worksheet in TurboTax 2017 calculates late Q4 2017 estimated tax payments from a deadline of 1/15/2018. Seems to me that the deadline this year was 1/16/2018 due to MLK Day falling on 1/15. Therefore TT is calculating too much penalty. No?
by johnanglemen
Wed Apr 04, 2018 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Estimated taxes for 2018
Replies: 18
Views: 1669

Estimated taxes for 2018

For those of you who prefer to pay estimated taxes based on annualized income (rather than the "safe harbor" of 100%/110% of last year's tax), how are you planning to calculate your estimates this year? I'm guessing there's no tax software out there that is updated for all the 2018 changes yet. Any ...
by johnanglemen
Tue Apr 03, 2018 2:36 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k: excess deferral vs excess annual addition
Replies: 5
Views: 349

Re: Solo 401k: excess deferral vs excess annual addition

Actually excess annual additions are relatively rare, because the employer should not allow it to happen'. As the sponsor of a one-participant 401k you are responsible for ensuring that you do not exceed the contribution limits. The best way to accomplish this is to be conservative with your contri...
by johnanglemen
Mon Apr 02, 2018 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k: excess deferral vs excess annual addition
Replies: 5
Views: 349

Re: Solo 401k: excess deferral vs excess annual addition

Thanks Spirit Rider. So it sounds like contributing more than net self-employment earnings would constitute an excess annual addition. In explaining the difference between excess employee deferral and excess annual addition, Vanguard says that an excess annual addition can "jeopardize the tax-qualif...
by johnanglemen
Mon Apr 02, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k: excess deferral vs excess annual addition
Replies: 5
Views: 349

Solo 401k: excess deferral vs excess annual addition

Can any wise CPA types out there help me understand the difference between an "excess deferral" (reported as code 8 on 1099-R) and an "excess annual addition" (reported as code E on 1099-R) when it comes to the issue of contributing more to your solo 401k than you have in net self-employment earning...
by johnanglemen
Mon Apr 02, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion deadline?
Replies: 2
Views: 184

Roth conversion deadline?

I see some sites (e.g. https://www.taxact.com/support/1330/2016/roth-ira-conversion-from-an-ira-distribution-must-be-by-end-of-tax-year) say that December 31st is the deadline for a Roth conversion. What does that mean exactly, since I was under the impression that an IRA can be converted to a Roth ...
by johnanglemen
Thu Mar 22, 2018 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a normal fund/ETF discount or is something else at play?
Replies: 5
Views: 523

Re: Is this a normal fund/ETF discount or is something else at play?

Since international funds trade when the underlying markets are closed, Vanguard makes fair-value price adjustments to the mutual fund price. Since these adjustments are not perfect, the ETF price does not always track Vanguard's computed NAV. In other words: At 4PM, the market takes its best guess...
by johnanglemen
Thu Mar 22, 2018 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a normal fund/ETF discount or is something else at play?
Replies: 5
Views: 523

Is this a normal fund/ETF discount or is something else at play?

Today Vanguard Total International ETF (VXUS) fell by 2.17%, while the mutual fund (VTIAX) only fell by 1.86%. Vanguard's site says that VXUS usually trades at a premium of $0.17 (~0.3%). So the discount today of 0.3% to NAV is altogether about 0.6% off from what I would've expected. Is that still e...
by johnanglemen
Thu Mar 15, 2018 4:13 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

I don't think inflation is the major issue here, but maybe try to think of it like this: You have a $100 bill that you hang onto and use it to buy $100 worth of milk in ten years instead of spending it on milk right now. That milk is most likely going to be more expensive, so the $100 bill buys les...
by johnanglemen
Thu Mar 15, 2018 4:00 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

Seems like I want to hold it. If I realize capital gains now just so I can use my "check" now, then I get no immediate benefit. My losses are gone, my basis is higher. But if I suddenly need some money next year and am forced to realize capital gains to access it, then I will be forced to pay some ...
by johnanglemen
Thu Mar 15, 2018 3:21 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

It might help you to think of your capital loss carryover as a check that can only be used to pay taxes and only under specific circumstances: taxes on $3,000 a year of ordinary income or the taxes at any time in any amount up to the full amount of the check of capital gains. Do you want to hold th...
by johnanglemen
Thu Mar 15, 2018 2:57 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

Your cost basis would be higher so you would have lower capital gains to pay taxes on in the future. The big question is what will happen with taxes on capital gains between now and then both as far as changes in tax law as well as your own personal tax situation. I would utilize the losses now unl...
by johnanglemen
Thu Mar 15, 2018 2:42 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

I might be dense but I don't understand how this is advantageous. All these strategies just seem to be designed to generate capital gains. I already have a lot of unrealized capital gains, and if I wanted more, I could just buy more index funds since the expected return is positive. But what good d...
by johnanglemen
Thu Mar 15, 2018 2:27 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

Hmm. Let me ask another question then. Say you had a large capital loss that you knew you wouldn't use "organically" for another 20 years. By "organically" I mean that you wouldn't recognize offsetting capital gains in the ordinary course of events until 20 years from today (and not at all in the i...
by johnanglemen
Thu Mar 15, 2018 1:11 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

I think it is fair to say that. It has a present value measured in dollars and that value will erode with inflation. A lot of corporations had to take markdown on the value of accumulated losses or tax credits or whatever with the recent changes in tax law and some even had to report a net loss bec...
by johnanglemen
Thu Mar 15, 2018 1:02 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

I didn't read the whole thread but I don't know about that argument. In 100 or 1000 years (and ignoring of course potential changes in tax law) 3k will still be 3k, though it might not buy you a coke at that point. But your capital gains will presumably be much larger. If your real tax liability is...
by johnanglemen
Thu Mar 15, 2018 4:47 am
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Re: Does inflation erode a capital loss carryover over time?

I think it is fair to say that. It has a present value measured in dollars and that value will erode with inflation. A lot of corporations had to take markdowns on the value of accumulated losses or tax credits or whatever with the recent changes in tax law and some even had to report a net loss be...
by johnanglemen
Wed Mar 14, 2018 11:08 pm
Forum: Investing - Theory, News & General
Topic: Does inflation erode a capital loss carryover over time?
Replies: 21
Views: 1346

Does inflation erode a capital loss carryover over time?

Is it fair to say that inflation erodes a capital loss carryover that you expect to hold for more than a decade? Or is that nonsensical?
by johnanglemen
Sat Jan 27, 2018 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Accidentally made direct Roth IRA contribution
Replies: 10
Views: 1405

Re: Accidentally made direct Roth IRA contribution

Is my assessment correct? If so, it appears to come down to whether it's worth the hassle of opening an IRA at another firm to save $41 in taxes? Thank you! Your assessment matches mine in all particulars. I don't understand why the IRS allows the earnings to remain in the IRA when you withdraw the...
by johnanglemen
Tue Jan 23, 2018 5:59 am
Forum: Investing - Help with Personal Investments
Topic: Accidentally made direct Roth IRA contribution
Replies: 10
Views: 1405

Re: Accidentally made direct Roth IRA contribution

Is it appreciation across all Roth IRAs in this timeframe, or only the account I contributed to? I would've assumed all, but Fairmark (http://fairmark.com/retirement/roth-accounts/recharacterizations/recharacterization-blues/) seems to suggest that it's only the particular account? Just the account...
by johnanglemen
Tue Jan 16, 2018 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2999

Re: Vanguard Tax Forms Now Online

rkhusky wrote:
Tue Jan 16, 2018 7:09 pm
Just got my 1099. Qualified dividends for Total Stock, Mid Cap and Small Cap are 94.78%, 87.18%, 65.72%, respectively. This compares to Vanguard's estimates of 94%, 89%, 71%, respectively.
Wow. If they had gotten qualified dividends to 95%, they could've reported them as 100%. Big loss.
by johnanglemen
Tue Jan 16, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Accidentally made direct Roth IRA contribution
Replies: 10
Views: 1405

Re: Accidentally made direct Roth IRA contribution

What does it mean that the earnings are calculated using the Roth IRA? Say my Roth IRA is up 50% overall. Does that mean that $5500 comes out and gets put in the nondeductible traditional IRA as basis, and $2750 comes out and put in there as earnings? That seems crazy / inequitable. What Kaneohe sa...
by johnanglemen
Tue Jan 16, 2018 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2999

Re: Vanguard Tax Forms Now Online

Can those of you who have tax forms tell us the final qualified dividend percentage for Vanguard Total Stock and Vanguard Total International?
by johnanglemen
Tue Jan 16, 2018 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: Accidentally made direct Roth IRA contribution
Replies: 10
Views: 1405

Re: Accidentally made direct Roth IRA contribution

There are three ways to fix this excess Roth IRA contribution. Given your facts the best way appears to be recharacterize the Roth contribution to be a non-deductible traditional IRA contribution. You ask Vanguard to do this and they will move the contributions plus earnings from the Roth to the tI...
by johnanglemen
Tue Jan 16, 2018 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Accidentally made direct Roth IRA contribution
Replies: 10
Views: 1405

Accidentally made direct Roth IRA contribution

In September 2017, I inadvertently made a contribution directly to my Roth IRA. My income is too high to do this. I meant to make a nondeductible contribution to my Traditional IRA and then convert it immediately to Roth IRA. The IRA is held at Vanguard. I invested the contribution in Vanguard Emerg...
by johnanglemen
Sun Jan 07, 2018 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: A lot in taxable, or a little in Roth: a no-brainer?
Replies: 19
Views: 1345

Re: A lot in taxable, or a little in Roth: a no-brainer?

The example seems to demonstrate that there are in fact cases when it would be better to take $50,000 in the Roth rather than receive $100,000 in taxable. Maybe that's totally obvious, but it was unintuitive to me -- you'd be turning down an extra $50,000! -- so I was just vetting it against the wi...
by johnanglemen
Sun Jan 07, 2018 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: A lot in taxable, or a little in Roth: a no-brainer?
Replies: 19
Views: 1345

Re: A lot in taxable, or a little in Roth: a no-brainer?

I'm also confused by the queation: assuming you don't need the money before 59.5, and assuming you have the same investments available on each account, Roth will always beat taxable, simply because it's not taxable. Of course, if you limit your options to the S&P500 in taxable account or something ...
by johnanglemen
Sun Jan 07, 2018 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: A lot in taxable, or a little in Roth: a no-brainer?
Replies: 19
Views: 1345

Re: A lot in taxable, or a little in Roth: a no-brainer?

You can't just put the 50,000k into Roth at one time? And why would you have different amounts in different account types? Can you clarify your first question? On the second, there are cases where you have a choice to incur certain deductible expenses that would increase your aftertax income but de...
by johnanglemen
Sun Jan 07, 2018 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: A lot in taxable, or a little in Roth: a no-brainer?
Replies: 19
Views: 1345

Re: A lot in taxable, or a little in Roth: a no-brainer?

It depends on how tax efficient the taxable investment is. It is possible that over a long enough time horizon if you used REITs as the asset class the Roth would win. In fact this is always the case when there is any tax inefficiency; the unknown is only the length of time it takes for the Roth to...
by johnanglemen
Sun Jan 07, 2018 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: A lot in taxable, or a little in Roth: a no-brainer?
Replies: 19
Views: 1345

Re: A lot in taxable, or a little in Roth: a no-brainer?

It depends on how tax efficient the taxable investment is. It is possible that over a long enough time horizon if you used REITs as the asset class the Roth would win. In fact this is always the case when there is any tax inefficiency; the unknown is only the length of time it takes for the Roth to...
by johnanglemen
Sun Jan 07, 2018 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: A lot in taxable, or a little in Roth: a no-brainer?
Replies: 19
Views: 1345

Re: A lot in taxable, or a little in Roth: a no-brainer?

Goal33 wrote:
Sun Jan 07, 2018 6:42 pm
I’d want the 100k in taxable so when I lose all my money in a once in a lifetime opportunity I can deduct the losses.
Funny. Let's assume it's actually the next Google for this exercise...
by johnanglemen
Sun Jan 07, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: A lot in taxable, or a little in Roth: a no-brainer?
Replies: 19
Views: 1345

A lot in taxable, or a little in Roth: a no-brainer?

Here's a practical question I'm trying to answer to make an investment decision. Say you have the choice between receiving $100,000 in a taxable account or $50,000 in a Roth when you're 21. You expect your marginal tax rate on capital gains to be well under 50% in retirement. You have access to the ...
by johnanglemen
Fri Jan 05, 2018 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Establish a home office or contribute to Roth accounts?
Replies: 1
Views: 220

Re: Establish a home office or contribute to Roth accounts?

Corrected the numbers slightly, but proposed conclusion is the same. Any thoughts on this?
by johnanglemen
Thu Jan 04, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Establish a home office or contribute to Roth accounts?
Replies: 1
Views: 220

Establish a home office or contribute to Roth accounts?

I'm self-employed. I'm trying to determine whether it makes sense to establish a separate home office for my business that would qualify for the home office deduction, i.e. formalize some space in my existing apartment. On the surface, this seems like a no-brainer. However, this would wipe out my ne...
by johnanglemen
Wed Jan 03, 2018 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Re: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

It says: "Do not include rollovers in figuring your excess contributions." OK. How does that address the issue that the penalty comes to $0 on line 17? The penalty is 6% of the excess, which has been properly calculated, OR the account value on December 31st. The account value on December 31st is $0.
by johnanglemen
Wed Jan 03, 2018 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Re: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

HueyLD wrote:
Wed Jan 03, 2018 7:32 pm
Did you read the instructions for line 15 of form 5329?
Yes. I see no bearing on what I'm saying. Line 15 comes to the excess contribution. The issue is the penalty calculation.
by johnanglemen
Wed Jan 03, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Re: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

..it calculates the penalty as 6% of the smaller of the excess contribution or of the Traditional IRA account value on the last day of the year. My traditional account value on the last day of the year was $0 because it had been converted to Roth, hence no penalty. This can't be right, so what's go...
by johnanglemen
Wed Jan 03, 2018 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Re: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

So, it is a bug in TurboTax and in you. :0 It is not a bug in TurboTax. TurboTax alerted the user to the problem. It is up to the user to fix the Excess Contribution. No-one can do that but the user. :D TurboTax (and the tax forms themselves) say the taxpayer did something wrong and the penalty for...
by johnanglemen
Wed Jan 03, 2018 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Re: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

Just seems like a bizarre loophole. I've correctly reported everything I did, and the forms acknowledge the excess contribution, but still spit out a $0 penalty. And Vanguard happily reports a normal Roth conversion. It is not a loophole. You still have not Removed the Excess Contribution. You have...
by johnanglemen
Wed Jan 03, 2018 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Re: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

Just seems like a bizarre loophole. I've correctly reported everything I did, and the forms acknowledge the excess contribution, but still spit out a $0 penalty. And Vanguard happily reports a normal Roth conversion.
by johnanglemen
Wed Jan 03, 2018 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Re: Is this a bug in TurboTax (re: excess IRA contributions)?

ThrustVectoring wrote:
Wed Jan 03, 2018 5:44 pm
It sounds like TurboTax is incorrectly treating a Roth conversion as a withdrawal of the over-contribution.
But how do the tax forms itself account for this situation? I'm not seeing it in form 5329 (https://www.irs.gov/pub/irs-pdf/f5329.pdf).
by johnanglemen
Wed Jan 03, 2018 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 1193

Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

I made an excess IRA contribution to my traditional IRA and then converted it to a Roth. (It was excess because it exceeded my earned income.) TurboTax caught this correctly, but it calculated my penalty as $0. On form 5329, in line 17, it calculates the penalty as 6% of the smaller of the excess co...
by johnanglemen
Tue Jan 02, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?
Replies: 21
Views: 1024

Re: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?

johnanglemen, Only certain kind of income aka compensation aka earned income count in this case. Business income does not count. Ditto on pension, social security income, and unemployment compensation. KlangFool This is earned income. It's self-employment compensation. That goes on 1040 line 12 (sc...
by johnanglemen
Tue Jan 02, 2018 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?
Replies: 21
Views: 1024

Re: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?

Hmm lots of conflicting answers here. To the people saying that there is no compensation if you defer to a trad 401k -- It looks to me like the self-employment income does go onto form 1040 line 12 (business income or loss, schedule C) as income. Then 92.35% of it is removed from AGI in line 28 (se...
by johnanglemen
Tue Jan 02, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?
Replies: 21
Views: 1024

Re: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?

Hmm lots of conflicting answers here. To the people saying that there is no compensation if you defer to a trad 401k -- It looks to me like the self-employment income does go onto form 1040 line 12 (business income or loss, schedule C) as income. Then 92.35% of it is removed from AGI in line 28 (se...
by johnanglemen
Tue Jan 02, 2018 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?
Replies: 21
Views: 1024

Re: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?

Hmm lots of conflicting answers here. To the people saying that there is no compensation if you defer to a trad 401k -- It looks to me like the self-employment income does go onto form 1040 line 12 (business income or loss, schedule C) as income. Then 92.35% of it is removed from AGI in line 28 (sel...
by johnanglemen
Mon Jan 01, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Can I contribute to both a Roth IRA and a solo 401k with the "same" income?
Replies: 21
Views: 1024

Can I contribute to both a Roth IRA and a solo 401k with the "same" income?

Let's say I earn $5000 in a given year for self-employment work. Can I contribute $5000 to both a Roth IRA and a solo 401k? Seems hard to believe, but I'm not finding what disallows that. Thank you.