2 Comments

  1. Roy Sloan
    February 21, 2013 @ 7:20 am

    I am employed and have a employer matching 401K. But, I also do work on the side for clients and file a schedule C for that work. Does my side income qualify me to have a self directed solo 401K plan. I would rather invest most of this income into a self directed 401K to use for real estate investment since I do not need the income and want to keep my tax liability as low as possible. Thanks, Roy

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  2. Dmitriy Fomichenko
    February 21, 2013 @ 11:58 pm

    As long as you have legitimate self-employment activity (it can be in addition to the full time employment) and absence of full time-employees working for you, you qualify for self-directed solo 401k. And if your self-employment income allows, you can make maximum contributions to your solo plan, but in addition to that you can also contribute on the business side (profit sharing). This will result in significantly lowering your tax liability and maximizing your retirement contributions, which means you have more funds available to invest in real estate or other non-traditional investments under your retirement plan.

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