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Solo 401k or any other tax deferred in this case possible ?

Posted: Thu Mar 14, 2019 12:53 am
by CatLadyNyc
I have primary job at a megacorp and I contribute maximum possible amount to 401k, IRA ( Convert it to Roth). I recently started teaching at a community college part time. They also sent me W2 for 2018 ( made 15K last year ).

Question: Is there any other tax advantaged account I can contribute to because of second job (eg: Solo 401k or similar ) ?.

Re: Solo 401k or any other tax deferred in this case possible ?

Posted: Thu Mar 14, 2019 6:19 am
by ivk5
Can’t have solo 401k without a legitimate sole proprietorship, and anyway can’t contribute without self-employment income. Second W2 job doesn’t get you that.

Find out if you’re eligible for any tax-advantaged accounts at second job. Perhaps not but worth asking HR/benefits dept there.

Re: Solo 401k or any other tax deferred in this case possible ?

Posted: Thu Mar 14, 2019 11:35 am
by ATLCPA
Ask the community college if it's possible they pay you via 1099 instead of W-2 in future periods.

Kind Regards,

Re: Solo 401k or any other tax deferred in this case possible ?

Posted: Thu Mar 14, 2019 4:20 pm
by Earl Lemongrab
ATLCPA wrote:
Thu Mar 14, 2019 11:35 am
Ask the community college if it's possible they pay you via 1099 instead of W-2 in future periods.
The classification is an artifact of the job, not an option based on what the best tax strategy is. How would the college explain to the IRS why all of the adjunct faculty were W2 except one?

Re: Solo 401k or any other tax deferred in this case possible ?

Posted: Thu Mar 14, 2019 11:36 pm
by CatLadyNyc
Earl Lemongrab wrote:
Thu Mar 14, 2019 4:20 pm
ATLCPA wrote:
Thu Mar 14, 2019 11:35 am
Ask the community college if it's possible they pay you via 1099 instead of W-2 in future periods.
The classification is an artifact of the job, not an option based on what the best tax strategy is. How would the college explain to the IRS why all of the adjunct faculty were W2 except one?
Yeah - I doubt it will happen even if I ask. I was hoping there is something I don't know about second W2 that could be used ...
Thanks guys.

Re: Solo 401k or any other tax deferred in this case possible ?

Posted: Thu Mar 14, 2019 11:44 pm
by whodidntante
hawksfan82 wrote:
Thu Mar 14, 2019 12:53 am
Question: Is there any other tax advantaged account I can contribute to because of second job (eg: Solo 401k or similar ) ?.
Solo 401k, no. But it's possible that you have access to tax advantaged accounts or a state pension plan through payroll deduction.

Re: Solo 401k or any other tax deferred in this case possible ?

Posted: Thu Mar 14, 2019 11:50 pm
by leeks
Since it is a W2 job, ask the community college HR dept if you are eligible to contribute to any retirement plans.