Work status changing in a month? Will no longer have individual 401k option...question.

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jonce17
Posts: 27
Joined: Sun Sep 10, 2017 3:57 pm

Work status changing in a month? Will no longer have individual 401k option...question.

Post by jonce17 » Sat Jan 13, 2018 5:09 pm

I'm going from a 1099 to a W-2 in the next 4-6 weeks and it's unlikely I'll be able to contribute to the company 401k for 12 months. If it were you, would you try to make out the individual 401k before the change seeing as I may not have another 401k option in 2018? Anything I'm missing here?

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The529guy
Posts: 577
Joined: Fri May 23, 2014 1:08 am

Re: Work status changing in a month? Will no longer have individual 401k option...question.

Post by The529guy » Sat Jan 13, 2018 5:17 pm

jonce17 wrote:
Sat Jan 13, 2018 5:09 pm
I'm going from a 1099 to a W-2 in the next 4-6 weeks and it's unlikely I'll be able to contribute to the company 401k for 12 months. If it were you, would you try to make out the individual 401k before the change seeing as I may not have another 401k option in 2018? Anything I'm missing here?
First, I would find out with certainty whether I have to wait 12 months to contribute to the employee plan.

dirtlaw
Posts: 5
Joined: Sat Jan 13, 2018 6:51 pm

Re: Work status changing in a month? Will no longer have individual 401k option...question.

Post by dirtlaw » Sat Jan 13, 2018 7:13 pm

I had this situation a few years ago. I stayed as an independent contractor until I had at least $18k in 1099 income so I could max my solo 401k for the year. Then the following year once I was eligible for my employer's 401k I deferred a high percentage of my paycheck and was able to max out that year too.

I kept my solo 401k though and I'm glad I did because now I can put about 20% of any side income I get into it as an employer's contribution.

jonce17
Posts: 27
Joined: Sun Sep 10, 2017 3:57 pm

Re: Work status changing in a month? Will no longer have individual 401k option...question.

Post by jonce17 » Sun Jan 14, 2018 12:46 pm

Thank you both.

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