Solved

Personal 401k CatchUp Contributions and New / Catch-up IRA

Forum|Forum|3 years ago
March 23, 2023
2 replies
0 views

If your self-employed company didn't make any earned income, can one make a catch-up contribution into a previously established personal 401-K? If I have a 401k that the company contributes to, but I didn't contribute anything to, can I make an IRA contribution of $2,000 plus a catch-up contribution of $6,500 (over 50 age)?

Best answer by DavidD66

Eligibility and the amounts you can contribute to a Solo 401(k) and a traditional IRA are calculated/determined separately. If you have earned income of at least $7,000 you can contribute that amount to a Traditional IRA ($6,000 annual limit for 2022 + $1,000 catch-up if over 50). If you are self-employed sole proprietor, and your business did not have any earned income, neither you nor the business can contribute to your solo 401(k).

D

DavidD66Answer

Eligibility and the amounts you can contribute to a Solo 401(k) and a traditional IRA are calculated/determined separately. If you have earned income of at least $7,000 you can contribute that amount to a Traditional IRA ($6,000 annual limit for 2022 + $1,000 catch-up if over 50). If you are self-employed sole proprietor, and your business did not have any earned income, neither you nor the business can contribute to your solo 401(k).

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

D

dmertz

Employee

If your net profit from self-employment is zero or you have a loss, you have no compensation from self-employment from which to make any 401(k) or IRA contribution.