Solo 401k for Sole Proprietorship (Schedule C)
I am 75. I collect a pension, social security, and RMDs. I have a sole proprietorship for consulting (Schedule C). Am I allowed to open an individual 401k? My objective is to shelter my earnings from consulting because I don’t need the money. This income drives up my taxes and my Medicare penalties.
Permalink Submitted by Alan - IRA critic on Fri, 2024-07-12 10:20
You can open a solo K at any age, but it will be subject to RMDs like your IRAs. The RMDs will of course be much smaller than the deduction for your contributions.