401k / Roth IRA contribution limits

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ge1
Posts: 320
Joined: Sat Apr 28, 2012 8:15 pm

401k / Roth IRA contribution limits

Post by ge1 » Thu Sep 13, 2018 12:46 pm

My wife has started working as a sole proprietor this year and will contribute the allowed max of 55k (both employer and employee contributions) to her Solo 401k.

She also has contributed $5,500 to her Roth IRA. Does the 5.5k count towards the 55k overall limit, or can she still contribute the full 55k to her Solo 401k?

thanks

TwstdSista
Posts: 986
Joined: Thu Nov 16, 2017 4:03 am

Re: 401k / Roth IRA contribution limits

Post by TwstdSista » Thu Sep 13, 2018 12:48 pm

No. The solo 401k contributions are a separate from Traditional/Roth IRA contributions.

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Earl Lemongrab
Posts: 5414
Joined: Tue Jun 10, 2014 1:14 am

Re: 401k / Roth IRA contribution limits

Post by Earl Lemongrab » Thu Sep 13, 2018 1:10 pm

ge1 wrote:
Thu Sep 13, 2018 12:46 pm
My wife has started working as a sole proprietor this year and will contribute the allowed max of 55k (both employer and employee contributions) to her Solo 401k.

She also has contributed $5,500 to her Roth IRA. Does the 5.5k count towards the 55k overall limit, or can she still contribute the full 55k to her Solo 401k?
Just to be clear, she'd need to be making something $180,000 to max out a solo plan. Is she going to be pulling in that kind of money?
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

ge1
Posts: 320
Joined: Sat Apr 28, 2012 8:15 pm

Re: 401k / Roth IRA contribution limits

Post by ge1 » Thu Sep 13, 2018 1:41 pm

Earl Lemongrab wrote:
Thu Sep 13, 2018 1:10 pm
ge1 wrote:
Thu Sep 13, 2018 12:46 pm
My wife has started working as a sole proprietor this year and will contribute the allowed max of 55k (both employer and employee contributions) to her Solo 401k.

She also has contributed $5,500 to her Roth IRA. Does the 5.5k count towards the 55k overall limit, or can she still contribute the full 55k to her Solo 401k?
Just to be clear, she'd need to be making something $180,000 to max out a solo plan. Is she going to be pulling in that kind of money?
Yes.

ge1
Posts: 320
Joined: Sat Apr 28, 2012 8:15 pm

Re: 401k / Roth IRA contribution limits

Post by ge1 » Thu Sep 13, 2018 1:42 pm

TwstdSista wrote:
Thu Sep 13, 2018 12:48 pm
No. The solo 401k contributions are a separate from Traditional/Roth IRA contributions.
Thanks.

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Earl Lemongrab
Posts: 5414
Joined: Tue Jun 10, 2014 1:14 am

Re: 401k / Roth IRA contribution limits

Post by Earl Lemongrab » Thu Sep 13, 2018 1:45 pm

ge1 wrote:
Thu Sep 13, 2018 1:41 pm
Earl Lemongrab wrote:
Thu Sep 13, 2018 1:10 pm
Just to be clear, she'd need to be making something $180,000 to max out a solo plan. Is she going to be pulling in that kind of money?
Yes.
Excellent!
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

ge1
Posts: 320
Joined: Sat Apr 28, 2012 8:15 pm

Re: 401k / Roth IRA contribution limits

Post by ge1 » Thu Sep 13, 2018 3:22 pm

Earl Lemongrab wrote:
Thu Sep 13, 2018 1:45 pm
ge1 wrote:
Thu Sep 13, 2018 1:41 pm
Earl Lemongrab wrote:
Thu Sep 13, 2018 1:10 pm
Just to be clear, she'd need to be making something $180,000 to max out a solo plan. Is she going to be pulling in that kind of money?
Yes.
Excellent!
That's what I keep telling her :sharebeer

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