401k and DB
What rules/limits apply if a taxpayer participants in his employer’s 401(k) and wants to establish DB plan using self-employment income from a consulting gig where he is the owner?
Thanks
What rules/limits apply if a taxpayer participants in his employer’s 401(k) and wants to establish DB plan using self-employment income from a consulting gig where he is the owner?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2017-02-17 00:28
I don’t think that the 401k affects the DB plan, but a DB plan is not appropriate for a “gig” or short term situation. For example, Schwab charges a 1500 annual fee for a one person DB plan plus 1500 for setup. To justify these expenses the taxpayer would probably need to generate considerable more income from the consulting job than as an employee.