401(k) and IRA Contribution

Would love some great feedback.

I am self-employed and annually max out both my elective deferral contributions to my individual 401(k) plan.

Whether I am able to deduct it or not, can I still make my $6,500 IRA contribution? I believe I can, but I read something about limits if I am covered by a plan at my work.

If I can make the contribution, and provided it is not Roth, after a period of time could I just roll it over to my 401(k)? I assume yes?

Thank you very much.

Sopie



  • This statement is ambiguous; “I am self-employed and annually max out both my elective deferral contributions to my individual 401(k) plan.”
  • There is a single employee elective contribution limit (2018 = $18.5K) across all 401k, 403b, SIMPLE and SARSEP IRAs. Did you make deferrals to another 401k plan. Or did you mean to say that you made both employee deferrals and employer contributions.
  • You need “compensation” to make IRA contributions regardless of type and income. For the self-employed, this is Form 1040 Line 12 (business profit) – Line 27 (1/2 SE tax) – Line 28 (deductible one-participant 401k contributions).
  • You need to provide us with net self-employment earnings (business profit – 1/2 SE tax), pre-tax employee elective deferals, employer contributions and any other employee elective contributions for a complete answer.
  • Note: The Self-Employed Health Insurance Deduction is limited to Form 1040 Line 12 (business profit) – Line 27 (1/2 SE tax) – Line 28 (deductible one-participant 401k contributions).
  • If you find yourself limited by compensation to make IRA contrbutions and/or your Self-Employed Health Insurance Deduction is limited, you can make desigated Roth 401k contributions instead.

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