Laid off - still being paid for a couple of months - no more 401k contribution

[calimero]

I have been laid off but still receive bi-weekly payments for a couple of months. However, I can't contribute to employers 401k anymore.
Is there a way for me to still contribute the full amount another way to get the 22k tax deferral?

[ChicagoBear7]

Unfortunately, severance pay is not deemed to be "earned income or compensation" eligbile for deferral into a 401k plan per the code. Hopefully, you will get a new job and will be able to start up deferrals soon. If not, or if you are deciding to exit the workforce, you may be eligible for the deductible IRA contribution - but of course, that is limited to $7k/$8k.

[tenkuky]

Not to derail, I'm in same situation but different...
Is vacation payout considered eligible for 401K deduction/contribution or strictly only earned compensation?
Cuz I'm accelerating into the final stretch but will still be ~ 2-3K short at final paycheck.

[calimero]

that stings.

I started to do some small consulting work which generates a couple of 1099. What is the situation there?

[toddthebod]

Not to derail, I'm in same situation but different...
Is vacation payout considered eligible for 401K deduction/contribution or strictly only earned compensation?
Cuz I'm accelerating into the final stretch but will still be ~ 2-3K short at final paycheck.

Vacation pay should be fine, as long as it's paid out while you are employed (i.e., on your last paycheck.)

[toddthebod]

that stings.

I started to do some small consulting work which generates a couple of 1099. What is the situation there?

Your only option would be to open a solo 401(k).

[calimero]

that stings.

I started to do some small consulting work which generates a couple of 1099. What is the situation there?

Your only option would be to open a solo 401(k).

How would that work? Who offers that? Might be worthwhile in my case to get the tax deduction

[arcticpineapplecorp.]

that stings.

I started to do some small consulting work which generates a couple of 1099. What is the situation there?

Your only option would be to open a solo 401(k).

How would that work? Who offers that? Might be worthwhile in my case to get the tax deduction

one option:

https://investor.vanguard.com/accounts- ... comparison

[Atlantic_ave]

A SEP IRA also works for your 1099 income

[calimero]

Can I do one annual contribution to plan or do I have to pay monthly.
With other words: I received payments during the year on an ongoing basis. Can I contribute in November max possible?

[life_force_prana]

that stings.

I started to do some small consulting work which generates a couple of 1099. What is the situation there?

Your only option would be to open a solo 401(k).

How would that work? Who offers that? Might be worthwhile in my case to get the tax deduction

You will need to generate self employment income (need not be much, even doing 1 or 2 online surveys could work), then setup solo 401k at say fidelity or schwab, then contribute the difference between 23K and what you already did YTD at your employer to solo 401k as employEE deferral. Note that once you do this you will not be able to do emploYER profit contribution (roughly 20-25% of net profit) but that may not matter as you may not have much self employment income anyways.