403B/ Solo 401K deferral limits
I have reviewed Denise’s table and am unsure of whether my 403B employment deferral/ Co side match limit my Self Employ Solo 401K deferral amount (company side net 20%, as my elective deferrals are managed through my employ). An issue with the 403B QRP considered owned by the employee?
Thank-you IRACritic et.al.!
Tomtom
Permalink Submitted by Alan - IRA critic on Mon, 2013-02-11 18:23
Yes, you are on the right track. The 415(c) annual additions limit for 2012 is 50k plus 5.5k catchup if eligible. This limit is per employer, but you are correct that a 403b participant is treated as the employer for purposes of the 403b plan. This results in all 403b plan additions being added to the solo K additions for purposes of the 50k limit. Besides your usual solo K employer calculation, that contribution can also not exceed 50k less your total non catchup 403b additions. You would have the same problem if you had a SEP IRA instead of the solo K.
Permalink Submitted by tomtom on Tue, 2013-02-12 03:42
Not a problem! The utility of the solo k has allowed pretax IRA rollovers, tax free roth conversions of IRA basis, personal 5 year loans; pretax capital is the best! SEP IRA cannot touch these features. I likely will never qualify for deferrals over the “415(c) bucket”; nice to confirm the catchup allows the bucket to spilleth over…Thank-you for your succinct reply,Tomtom