For simplicity
W2 comp- 500k
1099 comp - 50k
I max my employee contributions (23k) with my w2 401k.
I then open a solo 401k with MBDR capabilities:
1) Per TFB magic excel sheet I can contribute 9,866 as employER contributions to the new solo401k
2) I can do 29,598 in "after tax" contributions that can be converted to Roth
This totals: 39,464 to the solo 401k - my question is what about the the income tax (state and federal) I need to pay? Am I right I can just pay it from my w2 income and still put all this 1099 money in the solo 401k and income tax doesn't need to be deducted first?
W2 comp- 500k
1099 comp - 50k
I max my employee contributions (23k) with my w2 401k.
I then open a solo 401k with MBDR capabilities:
1) Per TFB magic excel sheet I can contribute 9,866 as employER contributions to the new solo401k
2) I can do 29,598 in "after tax" contributions that can be converted to Roth
This totals: 39,464 to the solo 401k - my question is what about the the income tax (state and federal) I need to pay? Am I right I can just pay it from my w2 income and still put all this 1099 money in the solo 401k and income tax doesn't need to be deducted first?
Statistics: Posted by Ultane — Sat Aug 24, 2024 12:21 am — Replies 1 — Views 292