ForumsSolo 401kContributing to Multiple Retirement Plans (SEP IRA & Solo 401k)

Forums Solo 401k Contributing to Multiple Retirement Plans (SEP IRA & Solo 401k)

  • Contributing to Multiple Retirement Plans (SEP IRA & Solo 401k)

    3 Replies
  • Steven D. Kurland

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k
    Top ForumsSolo 401k, Mega Backdoor Roth Solo 401k

    Steven D. Kurland

    Steven D. Kurland

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

    July 29, 2021 at 7:50 am

    1. if one owner has two or three different companies with no employees, one company has a sep ira, another has a solo can we still use the $64500 for 50 and over for total contributions for 2021? what about two solos?

    2. I am guessing if I contributed to a Sep IRA for one company in 2021, then I can not start a solo for the same company in the same year. please confirm?

  • George Blower

    Top SubjectPrivate: My Community Webinars,Mega Backdoor Roth Solo 401k
    Top ForumsPrivate: My Community Webinars, Mega Backdoor Roth Solo 401k

    George Blower

    George Blower

    Top SubjectPrivate: My Community Webinars,Mega Backdoor Roth Solo 401k

    July 29, 2021 at 8:03 am

    QUESTION:

    1. if one owner has two or three different companies with no employees, one has a sep ira, another has a solo can we still use the $64500 for 50 and over for total contributions for 2021? what about two solos?

    RESPONSE:

    1) If the SEP-IRA was not established using Form 5305 (see discussion of Form 5305 in the Solo 401k vs SEP IRA comparison page) the contributions may be made to both but you would need to aggregate the contributions to determine whether you have met the contribution limits.

    2) Likewise, if there are two Solo 401k plans that are owned by the same person or controlled group, the contributions would be aggregated for purposes of determining whether the limits have been met. Note: It is generally not wise to set up multiple Solo 401k plans for businesses that are owned by the same person (instead contributions can be aggregated for multiple sources of self-employment income).

    QUESTION:

    2. I am guessing if I contributed to a Sep IRAin 2021, then I can not start a solo in the same year. confirm?

    RESPONSE:

    If the SEP-IRA was not established using Form 5305 (see discussion of Form 5305 in the Solo 401k vs SEP IRA comparison page) the contributions may be made to both but you would need to aggregate the contributions to determine whether you have met the contribution limits.

  • Steven D. Kurland

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k
    Top ForumsSolo 401k, Mega Backdoor Roth Solo 401k

    Steven D. Kurland

    Steven D. Kurland

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

    July 29, 2021 at 8:19 am

    So should assume that if the SEP IRA was opened using a 5305 form, then opening up the Solo in the same year for the same company is a no go?

Related Blog Posts

Log in to reply.