Roth 401K

Submitted by D S on Sun, 2024-07-14 14:50

Hi,

I have both a job and self employment income. I am over 50 years old. My job offers a 401K but I do not participate. I make about 33K from my job and 24K from my self employment. I opened up a Solo Roth 401 K.

My understanding is that I can contribute up to $30,500 or 100% of my income which ever is less since I am over 50 to my Roth 401K.

1) Now is that contribution based on BOTH my Job and a Self Employment together (57K)? Or is it ONLY based upon my Self Employment (24K)?

2) If it’s both Job and Self Employment I can contribute the full $30,500. If it’s only my Self Employment income then I can only contribute 24K right?

3) Both of those are based upon Gross Income not Adjusted Gross Income correct?

Thanks so much!!

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Permalink Submitted by Alan - IRA critic on Sun, 2024-07-14 18:27

The solo K contribution cannot be more than your net earnings from SE less 1/2 your SE tax. You cannot use your other job earnings.
Your net earnings from SE less 1/2 SE tax. It’s not clear if 24k is actually that amount.
Correct.
You could contribute to a Roth IRA up to the contribution max.