Solo 401k LiveChat: How to Contribute to More than One 401k

[@xw9476tw]

can a person have more than one solo 401 k plan for the same business as long as he doesnt go over the annual contribution limits combined? For example if he wanted to kind of quit contributing to one plan and start making contributions to a plan with better features.

[@mysolo401kfinancial3]

No but you can restate your Existing Solo 401(k) plan to another solo 401(k) plan with better features like our plan.

[@xw9476tw]

@@mysolo401kfinancial3 I don't know the answer and you are probably right, but what is this passage from the irs 5500 ez instructions referring to when it talks about one or more one-participant plans? : Who Does Not Have To File Form 5500-EZ You do not have to file Form 5500-EZ for the 2020 plan year for a one-participant plan if the total of the plan's assets and the assets of all other one-participant plans maintained by the employer at the end of the 2020 plan year does not exceed $250,000, unless 2020 is the final plan year of the plan. For more information on final plan years, see Final Return, later. Example. If a plan meets all the requirements for filing Form 5500-EZ and its total assets (either alone or in combination with one or more one-participant plans maintained by the employer) exceed $250,000 at the end of the 2020 plan year, Form 5500-EZ must be filed for each of the employer's one-participant plans including those with less than $250,000 in assets for the 2020 plan year. Note. You should use the total plan assets as listed as of the end of the plan year on line 6a(2) of this form to determine whether the plan(s) assets exceed $250,000. If an employer maintains one or more one-participant plans, the total assets of all oneparticipant plans combined must be counted towards the amount of $250,000.

[@mysolo401kfinancial3]

Technically, it is possible to maintain more than one plan but there would be no advantage to do so (no additional loan option, no higher contribution limits etc) but doing so could draw scrutiny as to whether another solo 401k plan was established in order to attempt to circumvent the rules (such as take an additional loan in excess of the limits, making contributions in excess of the contribution limits, etc). Therefore, the industry best practice is to restate the existing plan as I noted in order to obtain the better feature but still only maintain one plan.

[@michaelsokoloff5793]

Is the catch-up contribution considered an employee contribution? If I have an employer 401k and a solo 401k, can I contribute 62.5K to each?

[@mysolo401kfinancial3]

Yes - a catch up contribution is an employee contribution which means that it applies at the employee level. Therefore, you can't contribute $62.5 to each plan.

[@timfink1494]

How many multiple employer 401k's can I have? if I'm an employee of 5 different companies can I have 5 plans all maxed at 57k? or is there a limit to this and how many you can use?

[@mysolo401kfinancial3]

The employer contribution limit applies at the employer level provided that each employer is unrelated. So in theory what you describe is possible but unlikely in that you would need to have 5 different jobs where each employer offered a 401k and contributed $57k on your behalf.

[@timfink1494]

@@mysolo401kfinancial3 Awesome! Thank you for the reply!

[@kristenpowell9347]

Can an S corp with one shareholder with a W-2 of $80,000 contribute $19,500 to a solo 401K, $19,500 to a Solo Roth 401K and contribute $20,000 for a profit sharing plan?

[@mysolo401kfinancial3]

Please see the answer posted on our Community site:mysolo401k.net/mycommunity/forums/discussion/solo-401k-contributions-scenario-s-corporation/

[@mysolo401kfinancial3]

Please join (it is free) mysolo401k.net/mycommunity/wp-login.php

[@mirandacook9876]

I have a solo401k for my independent consulting business (s Corp) however I am also a licensed real estate agent and have a separate LLC for my real estate business. Can I have two separate solo 401ks for each business? I do not have employees in either business?

[@mysolo401kfinancial3]

If you own both businesses, you would have just one Solo 401k but you can aggregate from multiple sources of self-employment income for purposes of making Solo 401k contributions.

[@mirandacook9876]

My Solo 401k Financial Meaning I could find from both business to meet the pretax contribution limit?

[@mysolo401kfinancial3]

Correct

[@mirandacook9876]

My Solo 401k Financial Thank you!

[@myhouse-yourhouse]

Joes Voluntary after tax contribution will be 57,000-19,500, Later on you mentioned that he can contribute a hundred percent of self-employment income which is 50,000 to his Voluntary after tax! Please verify!