Maxing Employer 401K vs Solo 401K

[AB609]

Which is the preferred order of investment if you have both a regular employer 401K and a Solo 401K and you have already met the employer matching? More specifically:


Regular Job:
Gross Salary ~190K
Age >50
401K Plan
Employer matches 1 to 1 up to 5% of employee deferral. I currently differ 7% (I project my contribution for
2020 of about $13,679)
Employer makes an additional 4% (no matching required)

Side Job:
Estimated 2020 Net Profit ~$50k
Solo 401K
Projected Contribution Limits using a couple different online calculators:
Salary Deferral (including $6500 Catch up) $12,321
Profit Sharing $9866

Is it better to move the 2% above matching from my regular 401K over to my solo 401K to reach my limit ($26K)?

Investment expenses and options in both plans are about the same

[KlangFool]

Which is the preferred order of investment if you have both a regular employer 401K and a Solo 401K and you have already met the employer matching? More specifically:


Regular Job:
Gross Salary ~190K
Age >50
401K Plan
Employer matches 1 to 1 up to 5% of employee deferral. I currently differ 7% (I project my contribution for
2020 of about $13,679)
Employer makes an additional 4% (no matching required)

Side Job:
Estimated 2020 Net Profit ~$50k
Solo 401K
Projected Contribution Limits using a couple different online calculators:
Salary Deferral (including $6500 Catch up) $12,321
Profit Sharing $9866

Is it better to move the 2% above matching from my regular 401K over to my solo 401K to reach my limit ($26K)?

Investment expenses and options in both plans are about the same

AB609,


Your limit is 26K + I401K (Employer )Profit sharing $9,866 ~ 36K


As for where you want to put your 26K (Employer 401K versus Solo 401K), it is up to you.


KlangFool

[HomeStretch]

I assume you have a mainstream Solo 401k for which you are the plan administrator. As such, it may be a bit easier for you if the Solo 401k plan assets remain below the Form 5500 reporting threshold of $250k.